Why Do I Need Help Selling?

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Why Do I Need Help Selling My Business? Can't I Do It By Myself?

We frequently receive the following questions about why companies need Orion Capital Group to find a buyer or get the highest possible selling price. The fact is, most business owners who try to sell their companies themselves either damage their company or sell it for a price significantly lower than it was worth. Here are some examples of common rationales offered by business owners who attempt to sell their company themselves:

• I learned about mergers and acquisitions during business school. Why shouldn't I sell my company by myself?
• I know my business or technology better than anyone else does. Why shouldn't I sell my company or technology by myself?
• I am a quick learner and I know how to use the internet well. Why shouldn't I sell my company by myself?
• I have bought and/or sold several companies by myself already. Why shouldn't I sell this company by myself?
• I already have an offer from a company. Why would I need someone to help me find a buyer?

While these are very logical questions, there are many good reasons why using Orion Capital Group or another advisor is highly beneficial:

I learned about mergers and acquisitions during business school. Why shouldn't I sell my company by myself?

You should consider the following points

• Experience in closing a deal is crucial for its success and our extensive and diverse experience will minimize potential problems in order to maximize the chances of closing successfully.
• People who try to sell their own business often fall victim to not seeing faults in their own company. Failing to acknowledge these faults tend to cause deals to fall apart down the road. Knowing the faults and marketing them in the best light possible will usually yield the best results.
• How will you go about finding buyer?  Did you know that about 70% of all deals close with someone other than a competitor, supplier, or customer?
• How will you keep the fact that you're selling your business confidential from your competitors, employees, customers, and suppliers?
• Who will run your business while you are focused on selling your company? Selling your business takes a good deal of time, energy and organization.
• Buyers often lower their offers when they know a seller is not being represented properly or actively seeking other buyers methodically.

Your knowledge of the business and/or technology is very important to the selling process and will be used extensively during the process. However, knowing the business and technology does not help you know the best process to use when selling your company or technology. Here are points to consider:

• Experience in closing a deal is crucial for its success and our extensive and diverse experience will minimize potential problems in order to maximize the chances of closing successfully.
• People who try to sell their own business often fall victim to not seeing faults in their own company. Failing to acknowledge these faults tend to cause deals to fall apart down the road. Knowing the faults and marketing them in the best light possible will usually yield the best results.
• How will you go about finding buyer?  Did you know that about 70% of all deals close with someone other than a competitor, supplier, or customer?
• How will you keep the fact that you're selling your business confidential from your competitors, employees, customers, and suppliers?
• Who will run your business while you are focused on selling your company? Selling your business takes a good deal of time, energy and organization.
• Buyers often lower their offers when they know a seller is not being represented properly or actively seeking other buyers methodically.

I am a quick learner and know how to use the internet well. Why shouldn't I sell my company by myself?

Most business owners are quick learners and many made good use of the internet to get to where they are today. Even if you are a genius, it doesn't provide you with the experience and connections needed to sell your company. Consider the following points:

• Experience in closing a deal is crucial for its success and our extensive and diverse experience will minimize potential problems in order to maximize the chances of closing successfully.
• People who try to sell their own business often fall victim to not seeing faults in their own company. Failing to acknowledge these faults tend to cause deals to fall apart down the road. Knowing the faults and marketing them in the best light possible will usually yield the best results.
• How will you go about finding buyer?  Did you know that about 70% of all deals close with someone other than a competitor, supplier, or customer?
• How will you keep the fact that you're selling your business confidential from your competitors, employees, customers, and suppliers?
• Who will run your business while you are focused on selling your company? Selling your business takes a good deal of time, energy and organization.
• Buyers often lower their offers when they know a seller is not being represented properly or actively seeking other buyers methodically.

I have bought and/or sold several companies by myself already. Why shouldn't I sell this company by myself?

That is an outstanding accomplishment and you should be proud. You may have more experience than the best investment bankers out there, but there are some issues that you must consider:

• People who try to sell their own business often fall victim to not seeing faults in their own company. Failing to acknowledge these faults tend to cause deals to fall apart down the road. Knowing the faults and marketing them in the best light possible will usually yield the best results.
• How will you go about finding buyer?  Did you know that about 70% of all deals close with someone other than a competitor, supplier, or customer?
• How will you keep the fact that you're selling your business confidential from your competitors, employees, customers, and suppliers?
• Who will run your business while you are focused on selling your company? Selling your business takes a good deal of time, energy and organization.
• Buyers often lower their offers when they know a seller is not being represented properly or actively seeking other buyers methodically.

I already have an offer on my company. Why shouldn't I sell my company by myself?

Congratulations! Getting a good offer is one of the more time consuming tasks of the M&A process and you should feel good that someone is actively seeking your company. The irony is that statistically, those who sell to an unsolicited buyer typically receive 20% below what they would have received if they had actively marketed the business.

• Experience in closing a deal is crucial for its success and our extensive and diverse experience will minimize potential problems in order to maximize the chances of closing successfully. Just because you have an offer, the deal is not "in the bag".
• Who will run your business while you are focused on selling your company? Selling your business takes a good deal of time, energy and organization. We serve as the bridge between our client, the buyer, the attorneys, and the accountants, to close the deal as quickly as possible.