The most common mistakes owners make when selling a company – and how an advisor helps them avoid them

Selling a company is a process in which decades of work and an entire family legacy are often at stake. Unfortunately, many owners make mistakes that reduce the value of the transaction or even lead to its failure. Here are the most common ones – and ways in which a professional adviser can help avoid them.

Starting preparations too late

Mistake: the owner decides to sell when the company begins to lose momentum, margins decline and prospects are weaker.
Solution with an advisor: the advisor helps to assess the best time to sell and prepare the company in advance (1-3 years earlier) so that it can enter the market in a growth phase when valuations are highest.

Lack of professional management

Mistake: the company is completely dependent on the owner, and the investor sees that after his departure, the business may fall apart.
Solution with an advisor: the advisor recommends building a strong management team to take over operational responsibilities, which increases the company’s attractiveness and raises its valuation.

Disorganised finances and documents

Problem: messy accounting, unclear ownership relationships, lack of consistent data for analysis. This is the most common reason for an investor to lower the price during due diligence.
Solution with an advisor: the advisor coordinates vendor due diligence – an internal review of finances, taxes and legal matters – to detect and fix problems before the buyer does.

Independent negotiations

Mistake: the owner negotiates the price and terms without experience, often succumbing to emotions or pressure from a more experienced investor.
Solution with an advisor: a professional negotiator represents the seller’s interests, conducts negotiations coolly and firmly, and the owner can maintain distance and focus on key decisions.

Limited access to investors

Mistake: the owner sells the company to an “acquaintance” or only to a local competitor, unaware that there are other players on the market willing to pay significantly more.
Solution with an advisor: the advisor has a network of contacts (private equity funds, industry investors, foreign capital groups), which allows them to create competition for the company and obtain a higher price.

Overly emotional approach

Mistake: the owner treats the negotiations as an assessment of their own work and reacts emotionally rather than professionally. This often leads to a loss of investor confidence or a deadlock in talks.
Solution with an advisor: the advisor acts as a “buffer” between the parties, allowing emotions to be separated from facts while defending the seller’s interests.

Neglecting the current business

Mistake: the owner devotes 100% of their time to the sale, and the company’s results begin to decline. The investor quickly lowers the valuation.
Solution with an advisor: the advisor manages the sales process operationally, and the owner can continue to focus on maintaining the company’s results and value.

Summary

The biggest mistake owners make when selling a company is believing that they can “do it themselves”. A professional adviser is not a cost, but an investment – one that can help you avoid mistakes, increase the value of the transaction and go through the process calmly, without unnecessary risk.