Wealth Warning: don’t try and do this by yourself.
The chances are, if you try to sell your own business you are more likely to "get it wrong" – sometimes very badly wrong.
The consequences of attempting to sell your business and "getting it wrong" will almost certainly mean that you will have lost significant opportunity for a better sales price. The opportunity to seek redress for any errors, misjudgments or sharp practice on the part of the buyer, is fairly remote, even if you could afford to pursue the matter.
Remember – even experienced business people who have bought and sold businesses would not generally attempt the task without professional help.
The profile of most SME business owners will be that they have:
The consequences of "getting it wrong" are really drastic.
Remember also that warranties and indemnities will be required by the buyer as part of the contract. These needs to be clearly understood and challenged where necessary.
This is the most common question that business owners ask. The answer is very simple and it has nothing to do with complex calculations.
Any business is worth exactly:
a) What you are prepared to sell it for – something you can determine; and
b) What someone will pay you for it – something you cannot determine
Never reveal to the buyer the price that you are seeking.
Let any suitable prospective buyer assess your business, subject to non disclosure agreements being in place, and then let them make their offer.
Just remember as well – most buyers will not share with you WHY they want your business – why would they? It would strengthen your position.
Never agree to something that you do not understand.