Antoinette Gonzales

WALNUT CREEK , CA, UNITED STATES, December 9, 2024 /EINPresswire.com/ -- Thousands of business owners contemplate selling their companies each year, motivated by reasons such as burnout, retirement, or a desire to capitalize on their efforts. However, not all businesses are immediately sellable. According to Antoinette Gonzales, business broker with The Bay Advisors, a few critical factors can make or break a deal when it’s time to find a buyer.

1. Unrealistic Expectations
One common barrier is overestimating a business's value. Business brokers emphasize the importance of consulting financial advisors before selling. This helps owners determine the financial outcomes necessary to sustain their post-sale lifestyle. Brokers can then provide a realistic opinion of value based on financial data and market conditions.
“If your valuation doesn’t meet your needs, it’s better to spend time growing your business’s value than pricing it unrealistically,” Gonzales advises. Overpricing often discourages savvy buyers, leading to delays or unsold listings.

2. Disorganized Financial Records
Buyers and brokers scrutinize financial records to assess profitability and operational transparency. Incomplete, mismatched, or messy books are immediate red flags. “Clean and detailed records build trust and confidence,” she says. Without them, buyers may walk away, wary of the risks associated with inaccurate financial data.

3. Profitability Challenges
While revenue is important, profitability takes precedence for buyers. Business owners often prioritize tax strategies that reduce their profitability on paper, but brokers recommend shifting focus before selling. Every dollar you save in taxes could cost you three to four dollars in reduced sale value. Adjusting personal and unnecessary expenses to reflect true profits can significantly enhance the sale price.

4. Lack of Management Infrastructure
Businesses heavily reliant on their owners are less appealing to buyers. Building a strong management team and delegating daily operations can make your business more attractive and valuable. Investments in technology, training, and leadership infrastructure pay dividends when it’s time to sell.
5. Plan Early for a Smooth Sale
The consensus among brokers is clear: early preparation is critical. Whether it’s cleaning up financial records, growing profitability, or implementing scalable management practices, business owners who plan ahead are more likely to achieve their desired outcomes.

Antoinette Gonzales Norris
The Bay Advisors
+1 408-320-8129
email us here
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