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How to destroy the value of a business

๐Ÿ’ฃ keep messy records

๐Ÿ’ฃ leave sale until the latest possible time, 64 and 9 months seems to be a popular choice

๐Ÿ’ฃ have bad relationships with minority shareholders

๐Ÿ’ฃ create complexity and hardship inside your premises lease

๐Ÿ’ฃ do not demonstrate you have paid yourself a fair wage over time, like any employee

๐Ÿ’ฃ do not establish a pattern of dividends over time (in addition to wages)

๐Ÿ’ฃ be personally critical to the operations of the business

๐Ÿ’ฃ be massively reliant on a couple of key staff, customers and/or suppliers

๐Ÿ’ฃ occupy a sector of the market under stress and/or in decline

๐Ÿ’ฃ confuse fair value with what you would like for a price

๐Ÿ’ฃ keep your business plan in your head

๐Ÿ’ฃ ignore risks

๐Ÿ’ฃ select a broker who canโ€™t show you a written marketing plan/strategy to sell or isnโ€™t motivated to complete the sale

๐Ÿ’ฃ get into lawsuits and trouble with the revenue authorities

๐Ÿ’ฃ insult would-be buyers

๐Ÿ’ฃ make sure your business is worth too much so an employee or mum and dad team canโ€™t afford it, but also not valuable enough to be interesting to an M&A style purchaser


Obviously this is tongue-in-cheek but unfortunately itโ€™s super easy to fail to sell.


Something like 3/4 of all attempts fail, and itโ€™s usually because of one or more of the above.

Sometimes a good offence is a great defence.


Shore up a businessโ€™s value by working on the above as early as possible for buyers.


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