4 Common Mistakes to Avoid When Selling a Business in Melbourne

4 Common Mistakes to Avoid When Selling a Business in Melbourne


In the fast-paced world of business, even the slightest mistake can result in dire consequences, particularly when it comes to putting their businesses for sale. Just remember when Nokia's phone division was acquired by Microsoft for a whopping $7.2 billion? It seemed like a sound investment at the time, but in hindsight, many analysts now view it as a grave mistake. Why? Because the smartphone market exploded with competition from the likes of Apple and Samsung, leaving Nokia behind in the dust.


However, it’s not just large corporations that are at risk. Small business owners also face numerous pitfalls when it comes to putting their businesses for sale. For example, if you’re a local restaurant owner and have decided to sell your business without first cleaning up the financial records, you would get a lower selling price than anticipated.


Whether you’re a large corporation or a small business owner, it‘s crucial to avoid costly mistakes when selling your business. In this article, we will provide you with tips and tricks to help you navigate the murky waters of selling a business, so you can maximize your investment and avoid costly missteps.



Planning in Advance


Planning in advance is essential when it comes to selling your business. You can avoid potential obstacles and ensure a smooth sale. Don't believe us? Just remember the Instagram deal, owners who sold their company to Facebook for $1 billion after keeping detailed records and being prepared for the sale. Or the creator of Minecraft, who sold his company to Microsoft for $2.5 billion after careful planning and strategy. In the business world, proper planning can mean the difference between sinking or sailing to success.





Don't let your emotions get in the way of a successful business sale. Overvaluing your business can lead to lower sale prices or a lack of interest from buyers. To avoid this mistake, conduct a business appraisal that considers factors such as financial performance and market trends. 


Just look at Snapchat, which turned down a $3 billion offer from Facebook due to overvaluation and ended up selling for fewer years later. Don't let this happen to you - stay grounded and realistic for a successful sale.



Waiting Too Long


Waiting too long to sell is a costly mistake, as seen in the case of Dick Smith Electronics. Sold to Woolworths for close to 100 million in 1982, the company struggled under Woolworths' ownership, and its value dropped significantly by 2012 when it was eventually sold for just $25 million. Waiting too long to put up businesses for sale can result in a decrease in earnings and a drop in business valuation. Don't let this happen to you - plan and sell while your business is still strong.



Not Engaging with Professionals


Don't sell your business without professional help. Business brokers have the expertise to guide you through the complex process of selling a business. They can help identify potential buyers, negotiate the sale price, and ensure all legal and financial requirements are met. 


But don't just hire any broker - choose one who has a thorough understanding of the local business sales market and a pool of potential buyers like Absolute Business Brokers. With our extensive experience in the industry and in-depth understanding of the local market, we can provide invaluable guidance and support throughout the entire process.



If you're looking to put your businesses for sale and avoid these common mistakes, contact Absolute Business Brokers today to schedule a customized business appraisal and discuss your options.

Are you thinking of selling your business?

Absolute Business Brokers will provide you with a market appraisal that will ensure you are getting the necessary information to put you in the right position to get your business sold.