14 MOST COMMON MISTAKES BY BUSINESS OWNERS DURING SHARE SALES

Usually, selling a company is often a challenging and time-consuming process. This process requires detailed planning, preparation, and experience. In this process, business owners can make many mistakes. We have listed some of these mistakes for you. We would like to share the most common mistakes in the list below.

1)

Starting the process before adequately preparing the business for sale,


2)

Failing to prepare a competitive process and is limited to a single buyer,


3)

Failing to ensure the confidentiality of the process by making a confidentiality agreement,


4)

Failing to establish the necessary infrastructure for Due Diligence,


5)

Not collaborating with an experienced consultant and managing the entire process on your own,


6)

Identifying the expectations incorrectly based on an incorrect company valuation report,


7)

Experiencing negative buyer motivation due to improper financial figures of the company,


8)

Not clarifying the main terms of agreement and key issues in the Letter of Intent,


9)

Misunderstanding the offer and signing an agreement under inappropriate conditions,


10)

Failing to consider the taxes and legal situation while making the closing agreements,


11)

Neglecting the daily operation of the company during the sales process of the company,


12)

Not considering the acts related to the managers and failing to ensure the sustainability of the team,


13)

Failing to make accurate growth, investment, and profitability projections,


14)

Failing to properly design the performance-based payment.




Gökhan Acar / CEO
VALURA

 
 
 
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