Here are five reasons why business owners fail to maximize the sale value of their companies:
- They do not have a solid understanding of the current value of their business in the market;
- 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;
- They failed to identify and engage with buyers who will pay a premium for the company;
- They fail to structure a transaction that minimizes risk and maximizes their total cash consideration; and
- They sell their company at the wrong time.