Guide To Selling a Business

Resolve Customer Complaints

If you have customers that are unhappy, try to resolve their complaints. A potential purchaser that checks with a major client and finds that client is unhappy will really worry. Even a check with the Better Business Bureau that turns up unresolved complaints may reduce the chance of a sale. If the client is unreasonable, at least document your side of the story and your attempt to resolve the issue, so if you are asked about it by a potential buyer you can easily explain the situation.

Continue Running Your Business

While we would certainly advocate doing things that would make your business more attractive to prospective purchasers, do not do anything that will impair the businesses future. If something can be done to make the business more attractive and the time and cost is not material, then do it. If, however, you are doing something only because you think that it is what a buyer will value — don't do it. There are no guarantees that you can accurately figure out what a particular buyer will value or that a deal will close. You must operate the business as if you will own it indefinitely. In fact, when one of the authors was selling his software business a buyer walked away from the deal at closing. The buyer got cold feet, fearing that customers would leave after the closing and wanting to renegotiate the deal at the time of closing. The buyer had a $25,000 deposit in escrow with his lawyer that became non-refundable at the end of due diligence, which he gave up rather than complete the transaction.

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