For even the most experienced business people, selling a business can be a new phenomenon as it is something that most people do just once. From this, myths about the M&A process are created, which come to be believed as facts.
The below discusses the most common myths when selling a business, and the truth behind them.
The asking price is what I will receive.
As with buying a home it’s unlikely the price that you put it on the market for is what you will get, whether that be when you receive the initial offer, or when the surveys have been undertaken. When selling a business, the same can happen – buyers will view the asking price as subject to negotiation. After this, the buyer may then try to negotiate again once they have performed their due diligence on the company.
At Benchmark International, offers are on a ‘Bids Invited’ basis. This prevents a buyer viewing the asking price as something that can be negotiated. When it comes to due diligence, the buyer may try to renegotiate the initial price agreed, but Benchmark International will negotiate with the buyer on your behalf with your best interests in mind.READ MORE >>