We’ve outlined four below that can have a significant impact on how long the sale takes. By understanding these better, you’ll be in a better position to try to circumvent them.
- Do You Have Time on Your Side?
Be aware of the amount of time that you need to navigate the process. This includes the use of an intermediary who can help with the filtering of prospects vs. “suspects.” While it may seem like adding another party will slow things down, in reality it can help speed up the process by decreasing the amount of time spent on unqualified leads.
Potential issues may come up. One such issue is the time and documentation needed to compile the required Confidential Business Review. Sellers often aren’t aware of this, and so they have to take the time to compile it themselves. This can be a challenge, especially since they also have to keep their business thriving during this time.
- Trying to Do Too Much
Most business owners in the midst of selling find themselves challenged with the desire to fully be a part of both the selling process and the running of the business. However, delegation is key. Bring in trusted employees or outside advisors to be part of the sales process and you’ll find the process to be much smoother. Your employees likely have first-hand knowledge regarding additional concerns such as competition and potentially interested acquirers. Utilize their knowledge to your advantage.
- Delays Due to Stockholders
Mid-sized, privately held companies can often be supported by minority stockholders, and these individuals must be included in the selling process. The business owner will need to obtain their approval before moving forward with the sale. This process can often be influenced by the sale price and terms. However, there may be competing interests, pricing disagreements, or even inter-family concerns that can cause conflict and delay the process.
- Money Issues
Money is often a major issue. Business owners can be hesitant to accept anything less than their asking price, and this can often interfere with a successful sale. Additionally, sellers can often instantly turn down offers that don’t meet their desired asking price. This is where a business broker can come in and serve as a negotiator. At Gulf COast Business Broker we can help work out a deal in a manner that works for both sides.