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Writer's pictureRobbins Pellegrino

Debunking 5 Common Myths About Selling Your Business

Updated: Aug 10

Waiting to sell a business at its peak will get you less money. Yes, actually. Here's some more things you probably didn't realize about selling your business.

Unless you're one of those rare serial entrepreneurs, selling a business is probably something you've never done before. You’ve poured years—maybe even decades—into building your company, but when it comes time to exit, it’s a whole different ballgame.


For most business owners, selling a business happens only once. So, it's no surprise that many of them have a few misconceptions about the overall process.


And believe us, we've heard every misconception under the sun.


While the list below isn’t exhaustive, it does cover the most common myths we hear from business owners. These myths are all too prevalent, and knowing the truth about them can guide you towards a smoother, more successful business exit.


Whether you're a seasoned entrepreneur or a first-time seller, it's crucial to distinguish fact from fiction. Being aware of these misconceptions results in a better outcome and saves you lots of headaches—and money—along the way.


Myth 1: "You Should Sell at Your Business's Peak"

One of the most persistent myths out there is that the best time to sell is when your business reaches its peak value. It sounds logical—wait for the highest point of profitability and then cash in. But this strategy won't get you the result you're looking for. Why? Because once the peak has arrived, you're already too late.


Remember, a business valuation is based on its past performance and its future potential. If you start to feel like your business is peaking, potential buyers will see that too. And they won't like it.


Buyers are looking for businesses that have room for growth and increased profitability. They want something they can scale. If it looks like your business has already reached its zenith, smart buyers will take that into account when making their offers—and might even pass on the opportunity altogether.


Instead of chasing an elusive peak, it’s more practical to sell when your business is performing well, and market conditions are favorable for your industry (like they are for HVAC businesses right now.) Basically, you’ll attract the strongest demand when buyers can see solid financial performance and a trajectory that hints at even higher earnings in the future.


As a general rule, it’s usually better to sell a little too early than a little too late. We’ve seen several business owners lose out on a few million dollars because they got stubborn and held off on selling for too long.


Of course, now you're probably be asking: "When is the actual best time to sell a business?" Well, just for you, we answered that question here so you don't have to wonder anymore.


Myth 2: "Selling Means Retirement"

Another common misconception is that selling your business means you’re ready to hang up your hat for good. While retirement is a common reason to sell, it’s far from the only one. In fact, many business owners sell while they’re still in their prime.


We’ve seen young to middle-aged entrepreneurs sell their businesses to pursue new ventures, take on advisory roles, or dive into new investment opportunities.


For many, selling a business isn’t the end—it’s just a transition to the next phase of their career. Some start new companies, while others prefer to become passive investors or silent partners.


Another popular route for former business owners is taking on a consultant role in their industry, using their expertise to help other businesses thrive.


Regardless, the proceeds from your sale can give you the financial freedom to explore new ventures, invest in things you care about, or even just take a well-deserved break before deciding on the next career move.


The point is that selling your business doesn’t mean you have to fade into the sunset—unless, of course, that’s what you want to do. For others, selling is more like trading in your current ride for a new set of wheels. There's still plenty of gas left to burn and the possibilities are endless.


Myth 3: "Any Buyer Is a Good Buyer"

It’s easy to assume that any interested party would make a suitable buyer, but that’s rarely the case. Unfortunately, not all buyers are created equal. Some just don't have what it takes.


Finding the right buyer to acquire your business is a crucial part of ensuring a successful transaction. Each buyer brings their own intentions, financial stability, and industry experience to the table. While a business for sale might attract a lot of attention, there’s a big difference between qualified buyers and unqualified buyers.


A qualified buyer who understands your industry and has a clear vision for the future is far more valuable than someone who offers a high price but ultimately lacks the necessary funding or resources to close the deal.


The last thing you want is your deal falling apart at the eleventh hour because the buyer wasn’t up to the task. The best way to avoid this? Start with serious, qualified buyers from the get-go. Choosing a brokerage firm with a deep network of eager, qualified buyers can be a game-changer. (Hint: That’s us.)


Myth 4: "The Highest Offer Is the Best Offer"

You might think this myth goes hand-in-hand with the previous one, and you’d be right. It can be tempting to just go with the highest offer, but it’s important to look beyond the numbers. The highest bid doesn’t always equate to the best deal.


You also need to consider the terms and conditions that come with the offer. Factors like financing contingencies, the buyer’s ability to close, and how well they fit with your company’s culture all play a role.


The terms of the sale can significantly impact the final outcome. For instance, an offer with seller financing might pose financial risks if the buyer struggles to make payments. Other offers might come with earnout agreements that could be tough to achieve, or numerous contingencies that could delay the sale.


A slightly lower offer with better terms and a reliable buyer can often be the smarter choice over a higher offer with uncertain financing or terms that aren’t in your best interest.


Evaluating the quality of an offer means looking at more than just the price. You need to assess the buyer’s financial stability, any concessions they’re asking for, and how likely it is that the deal will go through without a hitch. This is where an experienced broker can really add value, helping you make an informed decision.


Myth 5: "Brokers Aren’t Worth It"

Some business owners believe they can save money by not hiring a broker. And honestly, it’s a fair question—why pay for something you think you can do yourself?


We get it. But here’s the thing: brokers bring a wealth of experience, industry knowledge, and negotiation skills to the table that can make all the difference.


Brokers play a key role in getting your business ready for sale, identifying the right buyers, and managing the negotiation process. They provide an objective perspective by helping to set realistic expectations and avoid unnecessary risks.


Plus, brokers have expertise in deal structuring and a deep understanding of legal and regulatory requirements to ensure the transaction is handled professionally from start to finish, and even long after the ink dries.


Not only can they save you time and reduce stress, but a good broker will also increase your final sale price. They can help you accurately value your business, market it to the right audience, and negotiate the best deal.


And let’s not forget our established networks and expert market insights, which can facilitate a smoother, more profitable transaction. The best brokers have connections with a broad pool of buyers, including private equity firms and strategic investors, which increases your chances of finding the perfect match.


While our services come at a cost, the value we provide far outweighs the fees. It’s a lot like hiring an attorney—you could represent yourself in court, but it’s well worth the investment to have professionals in your corner.


The Bottom Line

Selling a business is a complex process that requires careful planning and consideration. It’s not something to rush into with false assumptions or misguided expectations.


By avoiding these common myths, you’ll be better equipped to plan your exit with a clear understanding of the selling process. Whether you’re looking to retire, explore new opportunities, or simply capitalize on your hard work, understanding the realities of business acquisitions can make all the difference in achieving a successful outcome.


At Robbins Pellegrino, we pride ourselves on helping business owners navigate the sale process with confidence. Our team is here to provide the guidance and support you need to make the most of your business sale. Contact us today to learn more about how we can assist you in achieving your goals.


About Robbins Pellegrino: Robbins Pellegrino is a Florida-based business brokerage firm led by Chandler Robbins and Joe Pellegrino, Jr. that is committed to redefining industry standards. We focus on creating meaningful partnerships and ensuring successful business transitions for both buyers and sellers. For more information, visit us at www.robbinspellegrino.com or call (239) 360-6273

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