1.  Poor Timing: As the saying goes, “Timing is everything.” Selling one’s business at the proverbial top of the game is almost impossible, but selling on the upside is certainly better than selling on the downside.

There is another side of timing. The owner is 63 years old and says he doesn’t plan on retiring until he is 65. Besides, business is really good right now, so why sell now? Because timing is everything, and since the business is better than ever, it will command a much higher price now. Waiting may mean accepting a much lower price.  The time to sell is now!

2.  Not Prepared: This is like beating a dead horse. It is a subject that is talked about often, probably because it is so often ignored. Too many sellers come to the process woefully unprepared. Financial information is lacking, agreements expired or non-existing, too many open-ended items, etc. Time is wasted gathering information that should be at the ready (and, incidentally should be current for the normal course of business).

3.  Not in Agreement: Too many deals fall apart because family members, stockholders or partners were not in agreement on the details or of actually selling the company. Agreement is paramount prior to even considering selling.

4.  Not Using Your Sixth Sense: The business owner has built his or her business using his or her own judgment or sixth sense. Another term for this is “gut feeling.” It is what probably has made the business, and its owner, so successful. The same is true when selling. Is it the right deal, the right buyer, the right deal structure? Some situations are beyond one’s control, but sellers have to remember to use the sixth sense that has served them so well in the past.

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