Every business has its challenges and there is no way to avoid that. Even the companies with the best cultures, compensation plans, and products and services will face issues. When you decide you are going to sell your business, it can be like a “get out of jail free” card on these problems as you hope to leave them for someone else. So the question is, “is it worth taking the time to solve these issues before you go?”. The answer is a resounding YES!
Once you start working with a prospective buyer, they will start a process called due diligence. This process will delve into all of the inner working of your business. And if there are issues, they will likely come to the surface. They will look through your books, talk to your employees, talk to your clients, and ask you questions you probably never thought you would be asked.
During most business sale processes, there is a hold-back on the price you get for your business which is put into an escrow account. This money can be attached if things crop up that were not disclosed during the due diligence process. Therefore, if there are problems that you can fix, its best to deal with them now and not leave them for the “next guy” as they could come back to haunt you.
Michael Giuffrida from Southington CT has been operating businesses since 1997. He is an experienced entrepreneur in business management, profitable growth, business valuation, mergers and acquisitions, and information technology managed services.