Mistakes to avoid when selling a business

When it comes to marketing and selling a business, it’s crucial that you are familiar with the ins and out of the process so as not to risk jeopardizing the transaction and protect your best interests. Transferring ownership is complicated, requiring possibly long-winded negotiations, complex financial discussions, and delicate tax audit, explains business professional Tyler T. Tysdal.
Image source: betterbusinesscontent.com

One common mistake a businessman makes when opting to sell a business is taking too long preparing for the sale. Remember that the ideal time to begin preparing a business for the market is the time you draft a business plan. It’s not premature at all to do it this way as you’ve nothing to lose by anticipating a future sale, even if you don’t end up selling the business altogether. As you work on your business model, begin maintaining detailed records and growth plans.

Another common pitfall is informing both customers and employees too early about the sale. For one, this will force your staff to already apply for a new job even before the sale is finalized, causing you to lose crucial team members whom you still need. This could also make loyal customers waver and look for new providers before the sale is realized. Moreover, no prospective customer would patronize a company amid a big transition as they’d deem products and services inconsistent at that point.

Image source: ball-law.com
Lastly, most people selling a business tend to underestimate the length of the process. Keep in mind that until such a point that the actual sale is finished, you have to continue running the company as this drastically hurts the sale and affects your bottom line, says Tyler T. Tysdal.

Tyler T. Tysdal is the Managing Partner of Platte Management, a single-family office with active investment strategies in private equity and real estate. More on Mr. Tysdal and his work here.

Comments

Post a Comment

Popular posts from this blog

Sports business: What the best sports managers have in common

Image
Image source: buzzsouthafrica.com A huge part of sports is management, which is why sports managers are incredibly significant figures in the industry. They handle quite a number of affairs behind the scenes. Sports managers negotiate contracts, organize media exposure, market events, and promote their clients. They have a huge influence on the tides of an entire professional season, especially if people consider how much superstar athletes trust them. But being a sports manager isn’t for just anyone. Tyler T. Tysdal explains that individuals who become sports managers and excel at it are committed to the endless hours, long trips, and stresses that come with the job. And even with all the issues and problems they face, sports managers are still composed and still focused on the prize, which is to land the best deals they can for their clients. The best sports managers are also expert negotiators. They have to be for them and their clients to get ahead. They are great...
Read more

Planning for an exit strategy amidst an M&A

Image
With extensive experience in entrepreneurship and investment, Tyler T. Tysdal has amassed a wealth of knowledge through the years. And through his series of blogs, he tackles various topics in and around business and investment. Image source: cosmeticsdesign.com For this blog, Tyler T. Tysdal touches on planning for an exit strategy – amidst a merger or acquisition. Before anything else, exit strategies need to be part of the business plan. This means that even before businesses are set up, owners already have an idea of how to preserve either the growth or assets of their business. Tyler T. Tysdal notes that there are several ways to go about planning for an exit strategy amidst a merger or acquisition. However, many factors can influence the planning itself, such as the specific circumstances and priorities of the company. Examining these circumstances can aid the owner when looking for the best strategy for the company and shareholders. Image source: martechtoday.co...
Read more

Revenue streams you'll get from building your esports team

Image
It’s a common dream for many sports investors to own a team in the big leagues– whether it’s football, baseball, or soccer. What stops them from acquiring a team is the hefty price tag which can cost an upwards of a billion just to wade in. An esports team, on the other hand, can realize a sports investor’s dream of owning a franchise while building a brand for a younger, global market. Image source: Sogo Gakuen Human Academy Managing and owning an esports team can be risky if the investor focuses on winning league tournaments. Fortunately, this risk can be managed by creating revenue streams from a potential market of 380-million esports viewers and enthusiasts across the globe. The first revenue stream franchise owners should look at would be content creation at video game platforms like Twitch. These platforms play a billion hours of content to hundreds of thousands of viewers and therefore promise returns for advertising. A team can engage with these viewers while pushing adv...
Read more