The Truth About Selling Your Business:(That Social Media Won’t Share)

The Truth About Selling Your Business:

(That Social Media Won’t Share)

1) Selling Is Emotional

Social media will rarely highlight the emotional toll of selling your business. For many owners, your business is like your baby. Letting go can bring unexpected feelings even when the sale makes financial sense. It is an emotional rollercoaster.

2) Buyers Care About Systems

Here’s the harsh truth: Buyers prioritize businesses with solid, owner-independent systems. If the business relies heavily on you to function, it becomes far less attractive. This critical factor is often overlooked on social media.

3) It Takes Longer Than You Think

You probably only hear about deals that closed in 4 months. The reality is that it takes much longer. Most deals take 6-12 months to close, and some even fall apart during due diligence.

4) Financial Documentation Is Everything

Poor bookkeeping kills deals. Buyers and lenders scrutinize your financials, so if they aren’t clean and detailed, you could scare off serious buyers. Preparing before going to market could save you a deal from falling through.

5) Valuation Myths

Social media loves to boast about high multiples, but most small businesses sell for 2-3X their Seller’s Discretionary Earnings (SDE). Unless your earnings are above $1M.

Get a certified business valuation as opposed to a broker's opinion. It sets price expectations.

6) Earnouts & Seller Financing Are Common

Buyers often ask for seller financing or earnouts to reduce their risk. This means you may not get 100% of the purchase price at closing. A 10-15% seller note often helps bridge the gap to successfully close a deal.

7) Buyers Will Dig Into Your Weaknesses

Any issues - high employee turnover, customer concentration, or declining revenue - will be questioned during due diligence. Be prepared to address them honestly and proactively. A good broker should have you ready for these questions and possibly handle some answers.

8) The Buyer Pool

Social media has exploded with content around buying businesses. The reality is that most buyers are not ready or qualified which means the buyer pool is smaller than it may appear.

9) Brokers Can Be Game-Changers

Many social media voices suggest selling independently, but brokers bring expertise, negotiate better deals, and handle time-consuming tasks like marketing, vetting buyers, and leveraging their network of buyers and investors.

10) Confidentiality Is Critical

If word gets out about your sale, employees, customers, and competitors may react negatively. Keeping the sale discreet is harder than it seems. Make sure your broker has everyone under NDA and your information is secured in a data room.

11) Post-Sale Transition Period

Buyers often request for you to stay on for a transition period to ensure a smooth handover. This isn’t always mentioned but can last weeks or months. If you are willing to help transition it makes your deal more appealing.

12) Financial Planning

Speak with your financial advisor so you are prepared to pay any business debts, fees, and calculate your capital gains taxes.