Why Owners Fail To Maximize The Value Of Their Companies

Here are five reasons why business owners fail to maximize the sale value of their companies:

  1. They do not have a solid understanding of the current value of their business in the market;
  2. They do not clearly articulate the acquisition rationale, have inadequate documentation, and are not prepared to undergo the intensive due diligence process that forms a crucial step in the acquisition process;
  3. They failed to identify and engage with buyers who will pay a premium for the company;
  4. They fail to structure a transaction that minimizes risk and maximizes their total cash consideration; and
  5. They sell their company at the wrong time.

Posted in: Things to Avoid

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