Selling the business: The significance of resolving issues

For business owners who are putting their companies on the market, how important is it to resolve all the little problems before entertaining potential buyers? The short answer is – very. In many ways, big issues are easier to fix since they stand out and people have a sense of urgency to get them straight. It’s the little ones that need more attention.

Before settling on a price and buying a business, prospective buyers will hire teams of experts and professionals to look closely at what they’ll be acquiring. This process, often referred to as due diligence, is only standard since businesses don’t come cheap. Potential buyers will go through all the financial papers, interview employees and clients, and try to look for holes to either not buy the business or pull down its price way below what it was being sold for.

Prices of businesses are usually held back and may change if potential buyers find things that were not disclosed by sellers in the first place. Think of it as selling a house or a car – to be sold at the price you want it to be sold, it needs to be as good as new or even better. This is why fixing all those small problems is crucial. It is best to deal with the issues now than have them haunt you later.

<i><a href="https://www.slideshare.net/MichaelGiuffrida4">Michael Giuffrida</a> is a managing partner at Titan Strategic Partners. With headquarters in Hartford, Connecticut, the company’s expertise is in building and improving organizations from startups to established businesses. For more articles like this, click <a href="https://michaelgiuffrida3.blogspot.com/">here</a>.</i>