Selling your business in Glen Ellyn, IL can be an exciting and potentially lucrative step, but it’s also a complex process that requires careful planning and strategy. Whether you’re a first-time seller or you’ve done this before, missteps can lead to undervaluation, drawn-out negotiations, or even a lost deal.
Fortunately, when you use a business broker, you can sell your business as quickly as possible and for as much money as possible. Tangent Brokerage sells businesses in Glen Ellyn and the surrounding areas, guiding business owners like you through every step of the process.
Let’s highlight the most common mistakes business owners make when selling a business, and provide tips on how to steer clear of them.
Mistake #1. Failing to Prepare Financials Properly
Not having up-to-date, accurate, and organized financial statements can be a red flag for potential buyers. If your books are messy, or you haven’t properly documented cash flow, expenses, and revenue streams, buyers may question the credibility of your operation—or worse, walk away.
To avoid this from happening, work with an accountant or financial advisor to ensure your records are complete and verified. Have at least 2–3 years of solid financial statements ready, and be transparent about any liabilities and outstanding debts.
Mistake #2. Setting an Unrealistic Asking Price
Many business owners overvalue their companies based on emotion or sunk costs. An inflated asking price can scare off serious buyers, prolong the sales process, and ultimately force you to lower your price under less favorable conditions.
Tangent Brokerage is an expert in valuations. We’ll assess your company’s worth in the current market and look at recent sales of similar businesses to gauge a realistic range. Then, we’ll set the right price to attract highly qualified buyers. It’s a win-win for everyone!
Mistake #3. Underestimating the Importance of Confidentiality
Letting word get out prematurely that you’re selling can lead to a loss of key employees, unsettled customers, and even a drop in value if competitors leverage the situation. To avoid these issues, we recommend keeping critical deal details to a select group of trusted team members and plan an internal communication strategy so employees don’t feel blindsided once a sale is imminent.
At Tangent Brokerage, confidentiality is important to us. We will market your company to qualified buyers without revealing proprietary information about your business. In addition, we have potential buyers sign non-disclosure agreements (NDAs), and we safeguard you from the wrong buyers.
Mistake #4. Neglecting Operational Performance During the Sale
Selling your business in Glen Ellyn is time-consuming. Some owners become so focused on the sale that they neglect daily operations. This can lead to a dip in performance, which then reduces the business’s value right when you need it to shine.
Tangent Brokerage handles all aspects of the sale process so that you CAN focus on your daily operations. We highly encourage all sellers to continue delegating day-to-day management to trusted executives or managers, maintain KPIs, and make sure processes are easily transferable to new ownership.
Mistake #5. Not Vetting Potential Buyers
Eager to sell, some business owners jump at the first buyer who makes an offer. However, failing to properly vet that buyer’s financial position, business acumen, or seriousness can lead to wasted time and resources—or worse, a deal that falls apart at the last minute.
When you use a business broker in Glen Ellyn, you don’t have to worry about this side of things. Tangent Brokerage has a qualified pool of buyers that we reach out to when we have a business for sale. Our buyers have been properly screened and vetted, allowing us to differentiate between buyers who are serious and those who are just “looking around.”
Selling Your Business in Glen Ellyn
Selling your business involves careful planning, precise execution, and emotional detachment. By avoiding these common pitfalls, you can streamline the process and optimize your sale price. A well-executed sale not only rewards you for your hard work but also sets up the business and the new owners for continued success. To request a consultation or free valuation, contact Tangent Brokerage today at 630-862-5234.