Experiences Selling a Business: A Journey Through Both Success and Failure

Selling a business is an event that many entrepreneurs face during their career. The experience can be both rewarding and challenging, bringing a mix of success and setback. Two tales from experienced business owners will help illustrate the various paths one can take when selling a business.

Success: Selling My First Business

My experience selling my first business was a great one, despite the occasional stress about whether the business would find a buyer. This tale begins in February 2018, while I was swimming in Guam. A spontaneous idea struck me: why not try selling my business?

Firstly, I delve into Kenny Schumachers' perspective on when business owners know it is time to sell. Schumacher offers valuable insights that are less about the market value and more about personal readiness and future goals. In my case, I felt it was time to embark on another venture, and selling the business would allow me to invest in my future.

Faced with the daunting task, I reached out to a few business brokers and decided to proceed with FE International to represent me in the sale. Without these professionals, I have no idea how I would have managed the process. They acted as my business broker, handling the intricacies of the sale from creating a prospectus to finding potential buyers and vetting them.

With financial validation in place, the process became much smoother. They managed the preliminary answering of questions and vetting of buyers. Serious buyers were given a phone call, and I was only required to facilitate the discussion. Within a few months, the business was sold. This was a testament to the role of a good business broker in ensuring a smooth transaction.

Failure: Selling My Second Business

However, not all business sale experiences are smooth. My second business sale was a turbulent journey filled with missteps and frustrations. For two years, I dealt with a circle of incapable professionals who called themselves 'business brokers.' These brokers struggled to move away from their outdated business formats and eventually turned out to be nothing more than listing agents demanding a significant portion of the selling price.

Despite these challenges, I took the matter into my own hands by marketing my business and finding a lawyer in Minnesota. Unfortunately, this decision proved to be a mistake, as the lawyer I had been working with from day one worked against me, ultimately leading to a difficult situation. I was fortunate to have kept a lot of evidence in text and video, which helped me prove their illegal behavior to the authorities. Without these records, I might have faced significant trouble.

Now as I prepare to sell my second business, I have taken a different approach. I am no longer relying on expensive business brokers, opting instead to promote my business on my own and abroad. However, this new venture brings its own challenges, especially when it comes to finding a competent attorney to negotiate my unusual contract. The outcome remains to be seen.

Conclusion

Both success and failure are part of the business selling journey. Whether you choose to work with a business broker or handle the process yourself, it is crucial to be prepared, stay informed, and possibly seek legal advice to protect your interests. If you are considering selling your business, let these stories serve as a reminder that understanding your process and professional choices is key to a successful sale.