The truth about selling businesses

February 17, 2022

by a searcher from Polytechnic Ibadan in Lagos, Nigeria

I have often held this opinion and it might not be popular but it is the truth and this concerns the sale of a business.

The moment a person decides to sell a business, is the day the seller must take his or her mind off making profit from the sale. Many business owners who are looking to cash-out of sales of businesses have become the stumbling blocks and hinderance to the sale of the business they wish to sell.

A business seller should not try to take the last profit from the business he/she is trying to sell. What should be on their minds is a reasonable amount and not a profit out because of the brokers who know that if the businesses are sold at the asking prices they are listed they would go home with a large commission. The day this is taken into perspective more businesses will sell because the moment you list it for sale, you must bear in mind that you will not be expected to get a premium for it's sale.

Reply by a searcher
from George Mason University in Jacksonville, FL, USA

Finding sellers with this type of mindset, who were more focused on posturing the business for success post acquisition, was a huge part of my vetting process. Those owners who I could tell just wanted to cash out, wanted minimal transition time, and had the impression of being greedy were passed over in my search. I think using this barometer as a searcher is certainly helpful as you will likely end up inheriting a company with a more compassionate/healthy culture.

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