Risks in Putting off the Sale of Your Business if It Is Ready to Sell

Key Highlights 

• Understand why acting when all three readiness factors align maximizes your business sale outcome
• Recognize how emotional attachment and external pressure can delay financially costly ownership decisions
• Identifyexternal risks that erode value, including market shifts, new competitors, and regulation changes 
• Discover how unexpected health events can force unplanned sales at significantly reduced valuations
• Learn why most business owners who delay sellingultimately receivefar less than their business’s peak value 

You’ve never been known as someone who has trouble making decisions.

But here you are swinging like a pendulum when it comes to following through on selling your business.

You’ve taken your business as far as you can.

You have other ideas about what you’d like to do with the rest of your life while you still have the health to act on it.

Your wife is keen on travelling and although you’ve managed to take a vacation every year, it’s not the same as really stepping away from all the pressures of the business.

It’s a weight you’ve carried for many years – your shoulders loosen up at the mere thought of releasing it. You want out.

Last week you met with a business broker who worked with you to determine its most probable selling price. You won’t come away from the sale with as much as you first thought, at least not outright, as you’ll likely need to take back part of the purchase price as a loan to the buyer. It’s the one aspect you hadn’t accounted for. You’ll get a good return on your money, though. And the broker is confident you’ll be able to find the right buyer to look after the staff and customers with the same care you’ve shown them.

You left the meeting feeling pretty good about your decision and with a likely date for taking your business to market. You’ve earned it.

And yet – three days later – your closest friend, and your accountant and lawyer are urging you to put on the brakes. They remind you of all you’ve put into your business: Don’t you want more? Can’t you do better? How do you know you won’t be left holding the bag? Do you really want to risk all of that?

They’ve got you rethinking everything. Now what?

Should I go or should I stay

We see scenarios like the above a lot. All the right elements for the owner to sell their business are in place but then emotion takes over. Things come to a standstill. The attachment to the business or uncertainty about what lies ahead takes over. Even at the point of closing.

The owners need to consider the risks of not completing the sale. Ours is a world of rapid change where any of the following can weaken their negotiation position:

Poor health or an accident can force a decision when one is least prepared. We see it all too often. The owner has to take prolonged time off and the business suffers in their absence. Before you know it, the company’s best days are behind it.

In a worst case scenario the outcome could be closed doors and employees out of work.

The time to sell is when the owner is ready, the business is ready and the market is ready. Most wait too long to start thinking about their exit and as a result, they end up selling their companies for much less than they could have.

If you have reached a point of readiness, don’t risk your largest investment on an uninformed opinion.

Our promise is we’ll do our best to serve your interests, to provide professional guidance, to educate and protect you. When we give you our report of the most probable selling price for your business, we will tell you if you benefit by going to market now. And if there are ways you could make your business worth more, we will advise you so as well. But you are in the driver’s seat. It will be your call as to which route is best for your circumstances.

If you are serious about selling your business and you want the sale to be managed as expediently, professionally, and profitably as possible, you owe it to yourself to spend some time with a Sunbelt representative.

Please contact the closest Sunbelt office at your convenience to speak with one of our representatives, who will be glad to answer any additional questions you may have.

In this private and confidential interview we can provide further insights that will help you determine if your business is ready to sell and if your sales expectations are realistic.

FAQs 

What are the biggest risks of waiting too long to sell your business? 

Waiting too long to sell a business exposes owners to significant risks including economic downturns, the loss of key employees, increased competition, regulatory changes, and declining personal health. Any of these factors can substantially reduce business value. Most owners who delay selling end up receiving less than they would have if they had acted when the business was performing at its peak. 

When is the right time to sell a business? 

The right time to sell is when the owner is personally ready, the business is performing well, and market conditions are favorable. Waiting for all three factors to align, rather than acting on any single one in isolation, typically produces the best possible outcome. Consulting a professional business broker early helps owners accurately assess each of these dimensions before making a decision. 

How does emotional attachment affect the decision to sell a business? 

Emotional attachment is one of the most common reasons owners delay or abandon a sale even after determining that the timing is right. Uncertainty about life after the business, pressure from family or advisors, and a deep sense of identity tied to the company can all stall progress. Recognizing and proactively addressing the emotional dimensions of selling is critical to successfully completing a transaction. 

Can you negotiate a seller carry-back loan when selling a business? 

Yes, seller financing, also called a vendor take-back or seller carry-back, is common in small business sales. The seller agrees to finance a portion of the purchase price and receives repayment over time with interest. This arrangement can broaden the buyer pool, facilitate a faster sale, and often results in a better overall return than an all-cash deal negotiated at a reduced price.