Many business owners are individuals who have started or acquired a business. Most of these business owners have considered or will consider at some point an exit strategy in order to retire, achieve liquidity to pursue other business ventures, etc. Exit planning may be part of the business owner’s overall strategy of acquiring, growing the business, increasing its value, and then exiting the business through a merger or acquisition. Throughout the process of buying, owning, and selling a business, the owner will generally rely on the experience and advice provided by professionals such as legal counsel, accountants, financial advisors, and management advisors.
However, when contemplating an exit strategy many business owners attempt to guide themselves through the process without adequate, professional business brokerage or business appraisal services. This approach is filled with many pitfalls and may serve to actually destroy value in the process of exiting the business. The following seven deadly sins of selling a business have been identified in order to give business owners insight into the top reasons the process of selling their business may fail. The seven deadly sins also highlight the benefits of having a professional business broker and business appraiser involved throughout the process of selling a business.