How you should NOT sell your Website ?

1. Do not be clear about what is being sold.
2. Do not explain what business opportunity it provides and do not take time to see if it is in line with the buyer’s objectives
3. Do not keep the process moving and don’t follow up with any interested buyers.
4. Tell the buyer that they don’t know what they are talking about and that they are incapable
5. Sell when the time is not right
6. Talk more than you should
7. Don’t use common sense
8. Don’t listen or communicate well
9. Give advice that doesn’t relate to the selling of your business
10. Don’t give advice on your area of expertise or be helpful
11. Assume you know what the buyer is looking for without asking
12. Don’t try to understand the buyer and what their criteria are
13. Don’t plan and don’t be organized
14. Make assumptions about questions before they are asked and give your answer
15. Don’t allow the buyer to feel in control of the transaction in any way.
16. Pressurize the buyer into making hasty decisions
17. Be negative and aggressive and don’t give any respect
18. Answer questions incorrectly and hide information
19. Try and sell to a buyer who would not be good at running your business
20. Only think of how stressed you are and not that the buyer is also having a stressful time as they have to commit a lot of money to something.

The documents required by the seller :

1. Financial documents including the last three years of:
   • Profit and loss statements
   • Balance sheets
   • Tax returns
   • If applicable state sales tax returns and payroll tax records
2. An agreement for confidentiality
3. A Confidential report on the business
4. A business disclosure statement
5. A document of the resolutions to sell
6. A list of vendors

Documents required by the Buyer:

1. Financial documents showing:
   • The buyer is in a financial position to buy the business or to make the down payment
   • The buyers credit standing for getting a loan if applicable
2. Signed copy of the Confidentiality Agreement
3. Resume of skills if required
4. Disclosure statement of the buyer

1. Selling a business can be a difficult process and often needs persistence. The seller may start the process and not have a strong enough motive to sell.
2. Once selling the business gets seriously underway the seller may then realize the loss of something that gave structure to life and they could fear what lies ahead with such a great change, so this fear may prevent them from being committed to the sale.
3. When there are next to no offers for the business the seller could feel that they won’t get a good price for the business so they will withdraw from selling it.
4. Things could fall through for plans in the future or they begin to seem less fulfilling than running the business and so in this case it doesn’t seem the right time to sell for the buyer.
5. The seller could have set ideas about what they expect from the sale, for instance they may expect to receive all cash. When this is not the case, they do not wish to sell.
6. Due Diligence reveals issues that the buyer is not willing to undertake.
7. The seller wants to sell at a higher than market price.

There needs to be an understanding that the expectations of the seller and the buyer may be very different from one another.  This can be from the form of payment to the amount of training.

• The seller may expect to receive all the cash up front whilst the buyer would want only a 10% down payment.
• The seller may only expect to provide around a week of training, whilst the buyer expects two months of training.
• The seller expects the buyer to complete the due diligence in a day, whilst the buyer would like to take a few weeks
• The seller expects to complete the offer straight after due diligence, whilst the buyer may want to have a trial for 30 days running the business
• The seller expects a price of 5 -6 times annual business or even discretionary earnings, whilst the buyer does not expect to pay more than one year’s worth.

Timing

The 1960’s baby boomers are reaching retirement age, so it has been forecast by the International Business Brokers Association that a lot of businesses will be up for sale over the next few years, as many business owners move onto their next stage in life.

However, it isn’t easy selling a business you have spent most of your career building up and seeing grow and flourish. It isn’t easy for a business owner to admit that they are getting too old to run their business.  Selling a business is often a very emotional decision as the owner has to let go of much that has shaped their life and into which they have put a lot of work over many years, so it really has to be sold at the time that is ‘right’ for each individual.

Other Reasons for Selling

There are of course reasons for selling a business other than retirement. Sometimes it is health issues, some related to work with too much stress or burnout.  There may be legal issues that mean a sale is inevitable or there could be a lack of cooperation between those in ownership of the business.  A business may also be sold as it is thought that it is at the height of its potential and therefore the best time for sale or on the other hand others will want to sell when their business is declining and possibly also in need of more capital to grow or the prevention of the loss of key employees.