Go Legal Yourself!, 2nd Edition

CHAPTER 12What Could Go Wrong?

Business owners who are not knowledgeable about their Business Legal Lifecycle^® make drastic mistakes when selling their business and lose thousands of dollars in the process. Failure to prepare properly before selling your business and neglecting to closely manage the sales process itself can result in a disappointing outcome. So, what could go wrong? You may not find a buyer, you may fail to achieve the price you want for your business, or the sale may fall through in the later stages of the deal because of due diligence issues or other disruptive events.

The third most frequently asked question in the Exit phase is whether something could go wrong.

What Could Go Wrong?

Whatever the exit strategy, laying the groundwork for a successful sale is one of the most significant challenges a business owner will face. The wrong approach can create major financial consequences. It pays to know your options and which of them is the right fit for your business. Unfortunately, many owners lack the expertise and guidance to identify the proper path to exit and effectively manage key challenges along the way. Here are some of the most common mistakes business owners make while selling their business:

• Insufficient Preparation: When preparing your business for sale, take a look at all the things that need to be fixed, such as:
  • Excessive tax deductions should be identified, including running too many discretionary personal expenses through your company. Even ...