Business Sellers - please, please do not withhold any negative information regarding your business. The success of the sale depends on it! Many seller’s wait until the very last minute (once in escrow) to disclose critical information regarding the business. In most cases the buyer will not renegotiate and the deal will ultimately collapse.
Disclosing certain negative issues in the beginning of the purchase could be negotiated to suite the buyers needs. As a seller, promoting the perks of your business is easy however; withholding information in fear of not achieving Top Dollar for your business could have awful consequence.
Working with an experienced agent, allows you as the seller to disclose and discuss the best strategy to present the business to perspective buyers. Honesty is always the best policy
Some issues sellers neglect to disclose:
1. Equipment Lease Issues
2. Old Inventory Issues
3. Lawsuits
4. Downward Trends
5. Family Employees That Are Overpaid
6. Customer Sales Concentration
7. Terminated Contracts
As a seller, you may think your problem is unique, but most of the time, an experienced agent has come across your situation and has been able to successfully complete the purchase. That’s why having an experience agent involved in your transaction is important.
About The Author: KC Choi founder of Power Business Solution, Inc. offers business brokerage services to both buyers and sellers in the Los Angeles and Orange County areas. His business team includes 15+ professionals (multi-lingual) with extensive experience and knowledge with business transactions. KC can be reached by phone at 714-345-6774.
Watch for more blog posts / articles from me in the future!
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