Before putting your business on the market, you need to get ready for the due diligence phase.
It's an appealing fantasy: You launch a business, work hard to make it successful, and then sell it and retire to a tropical paradise.
However, selling your business is not that simple. In reality, the voyage to that lush, distant island can be long and perilous. You might have to navigate everything from key employees jumping ship, to waves of unexpected demands from the prospective buyer, to strong headwinds from lawyers vetting your company for things like product-liability issues. And when you finally reach your island paradise, you might find you can't afford to live there because you made a lot less money from the sale than you thought you would.
How do you avoid that nightmare scenario? It starts with setting realistic expectations — and being fully prepared to sell your business long before the letter of intent comes in.