"For Sale By Owner, May Not Be In Your Best Interest"
If you are contemplating selling your business by yourself, you may want to reconsider, as many business owners underestimate how much time and effort it takes to sell a business. For instance, you will have to figure out how to determine the value of your business, how to market your business (hopefully confidentially), qualify buyers, continue running your business, and eventually get to the closing table, to name a few of the many tasks required.
In reality most For Sale By Owner (FSBO) usually miss the mark when it comes to valuing their businesses, tending to under or over estimate the value of their businesses. In the cases where a business is grossly undervalued, the business will likely sell very quickly, but the owner will leave money on the table. In the case where the business is grossly overvalued, the business will likely languish on the market until the owner runs out of patience and gives up on selling their business, or in more extreme cases, they simply close the doors of the business.
In an effort to establish a realistic sales price for a business, it is vital to have a professional put together a business valuation that takes into account the income and assets of the business, while also focusing on the current market and other factors that will impact the sale of a business.