What the owner paid for it, what other businesses are advertised for, and what outdated rules-of-thumb (ROT!) are supposed to apply may have no relationship to today’s value. Price it too high and serious buyers won’t even look, price it too low and miss out on hard earned capital gain. Stonemill Partners has access to the latest statistics on business sales, industry research, and modern methodologies to provide accurate appraisals.
Reason #2 – The Owner Thinks selling a business is like selling a house!
Yeah, right! Selling a business is a much more complex business. Every business is different and business brokers may have to deal with landlords, accountants and franchisors, as well as financiers. There may be licensing issues, plant lease transfers, supplier and employment contracts, and tax considerations. There are often a number of legislative matters that can impact a business sale. Stonemill Partners Inc. can guide the owner through all these pitfalls and protect against post-sale problems.
Reason #3 – The Owner Thinks They Will Save On Paying Commission
This is a probably the major mistake for sale by owner’s make. Have they really the time (or expertise) to prepare a selling information memorandum, write and place ads, (costs money), show people through (including tire-kickers) and explain financial accounts (most need explanation). And confidentiality is out the window – what are the risks of your staff, suppliers, customers, and a competitor knowing your business is on the market?
Listing with Stonemill Partners Inc. ensures the business is promoted professionally through a multi-pronged marketing strategy (internet, print, direct mail, and database) and negotiations are handled competently to achieve the highest possible price with the least problems.