A Low to Mid-Market Owner's Guide To The Selling Process

Selling a business is one of the most significant financial transactions a business owner will ever make. Yet many owners unknowingly damage the potential value of their company, reduce leverage and/or options; or derail a deal entirely, by making avoidable, yet far too common mistakes.

As a business brokerage and M&A advisory firm based in Omaha, Nebraska and serving the greater Nebraska and Nationwide markets, we see these missteps repeatedly.  The great news? With proper planning and the right guidance, they are entirely preventable. 

Below are five (5) of the most common mistakes we see business owners make when selling their company, and how to avoid them.

One of the biggest mistakes business owners make--and we cannot stress this one enough--is waiting until they’re “ready to sell” before preparing for a sale. In reality, the strongest exits are planned years in advance, not weeks or months. 

Preparation impacts everything . . . financial performance, operational efficiency, management structure, and ultimately valuation. Owners who wait until burnout, health issues, or external pressures force a sale often find themselves negotiating from a position of weakness.

Best practice: Begin exit planning early. Advance preparation gives you leverage, flexibility, and options--whether you sell now or later.

Clean, accurate, and well-documented financials are essential for any successful transaction. Buyers, their advisors, and lenders expect clear profit and loss statements, balance sheets, tax returns, and explanations for add-backs.

Disorganized or inconsistent records slow down due diligence, reduce buyer confidence, and often result in price reductions or failed deals.

Best practice: Schedule a time to discuss what getting your financials documentation in order well before going to market looks like. Strong records signal professionalism and reduce perceived risk.

Selling a business is complex, confidential, and high-stakes. Owners who attempt to manage the process alone--or wait too long to engage a professional advisor--often make costly mistakes in pricing, negotiations, deal structure, or confidentiality.

An experienced business broker and M&A advisor acts as a buffer, strategist, and advocate--protecting your interests while maximizing value.

Best practice: Engage a professional, ideally DSA, early! The right advisor helps you avoid pitfalls, attract qualified buyers, and navigate and plan the process with confidence.

Once a business is for sale, or far too many times well before the business is actually for sale (and this typically isn't done purposefully by an owner, it is the result of committing mistake #1) some owners unintentionally shift their focus away from operations. This can lead to declining revenues, employee uncertainty, and weakened performance--exactly when stability matters most.

Buyers purchase future cash flow, not past performance. Any operational dip during the sale process or the preceding year(s) can directly impact value.

Best practice: Keep the business running strong until the day it closes. A well-managed company commands better terms,  smoother negotiations and due diligence, and a higher likelihood of a smoother post-exit experience for you and your legacy. 

Not all buyers are created equal. Focusing solely on the highest offer without evaluating buyer qualifications is a common and costly mistake.  

Unqualified buyers can waste months of time, fail to secure financing, or walk away late in the process. In contrast, a well-capitalized, motivated buyer often leads to a smoother closing and better overall outcome.

Best practice: Prioritize buyer quality, financial capability, and deal structure--not just headline price.

Most failed or underperforming business sales trace back to lack of preparation and right wrong-- or no--guidance from a professional. Owners who plan early, understand the market, and work with the right professional protect not only the value of their business, but their options.

Are you guilty of--or worried about--making any of these mistakes?  We are not here to point a finger, we are here to help because unlike other brokers/advisors, we have been in your shoes or seen how these mistakes have affected businesses and business owners in real-time.  Now is the time to start the conversation. Owners who prepare early with the right help put themselves in the strongest possible position for a successful exit.

Click on the link below to discuss your goals, your timeline, and how to position your business for a smooth, high-value sale.