Selling your business is serious business. Too many owners’ catch “Gold Fever” during the process. It comes in various shapes and sizes. It impact a business owner’s judgement and takes them down costly paths:
- Negotiating with a one-off buyer that says he really likes your business and will pay a premium;
- Structuring a deal without factoring in the taxes;
- Hiring an investment banker not experienced in selling businesses in your industry, but very experienced in telling sellers what they want to hear;
- Looking for the quick way out based on advice from the “cocktail circuit” which often times leads to the one-off buyer or a failed deal;
- Failing to properly prep your business for sale;
- Thinking you can do it all yourself; or
- Not conducting the entire sale process in a well managed and planned out manner, including skipping key elements in preparing the business for sale.
“Gold Fever” hits too many business owners during the sale. On small matters, not such a big deal, but when selling a business after decades of investment, hard work and extreme worry and sacrifice, it is a real big deal. If a business seller falls prey to the “Gold Fever” there is a very high likelihood that short cuts and rabbit trails taken in the sale process will significantly reduce the business owner’s chances of getting the best value for the business. Good counsel can break the “Gold Fever” and lead to far better results.