Working as a business broker has given me the chance to witness firsthand the intricate, emotional, and multifaceted world of business ownership transitions. Every deal is unique, and every client has left an impression on how I approach this profession. Here are some key lessons I’ve learned, based on real-world experiences.
1. The Importance of Flexibility: Navigating the Emotional and Practical Aspects
Selling a business is not just a financial transaction—it’s deeply personal. Business owners often view their companies as extensions of themselves, having invested countless hours, resources, and emotional energy into building them. Therefore, when it comes time to sell, there is often a natural resistance to certain changes or suggestions, particularly regarding price or business valuation. Fear of the unknown can lead to rigid stances on key elements of the deal.
For instance, I’ve learned that many sellers start out with a strong belief in a fixed sale price, largely influenced by their emotional attachment to the business or preconceived ideas about its worth. While confidence in your business is important, so is flexibility. Market conditions, buyer perceptions, and deal structure flexibility can all play a significant role in closing a successful transaction. In one deal, for example, the buyer proposed an earn-out structure—where part of the payment is contingent on the business’s future performance. While this initially seemed risky to the seller, it ultimately provided a solution that aligned with both parties’ goals. Flexibility in deal structures such as this can bridge gaps in price expectations and ease concerns about business continuity post-sale.
Another area where flexibility is crucial is in receiving and accepting feedback. A buyer may perceive the business differently than the seller, identifying areas of improvement or potential risks that hadn’t been previously considered. For the seller, hearing critiques about something they’ve built can be difficult, but it’s essential to separate emotions from business. What may seem like harsh criticism is often an opportunity to better position the business for sale and may reveal aspects that enhance the value in ways previously overlooked. Being open to this type of feedback is often the difference between a prolonged listing and a successful sale.
2. Documentation and Organization: Preparing for Buyer Scrutiny
One of the most common challenges I’ve encountered is the lack of organized, clear financial records and essential business documents. Business owners are often so focused on the daily operations—keeping clients happy, managing staff, and handling the never-ending stream of tasks—that administrative duties like organizing financials or updating legal documents take a backseat. While understandable, this can create significant barriers when it’s time to sell.
Buyers often make decisions based on clear and easily digestible financial data. In many instances, however, sellers are unprepared to present up-to-date financials, corporate minute books, or accurate asset and inventory lists. A buyer’s due diligence process hinges on having access to this type of data to validate the seller’s claims about the business’s profitability and future prospects.
To give an example, I’ve seen potential deals slow to a crawl simply because the business’s financial statements were disorganized, or worse, incomplete. It’s not just about having a profit and loss statement; it’s about ensuring these numbers are consistent and verifiable. Buyers want to see stability over time, and discrepancies or missing information create doubt. An ounce of preparation truly does go a long way in expediting the process and increasing a buyer’s confidence.
Statistically, businesses that present organized financial data can reduce the time spent on due diligence by nearly 50%. In a market where many buyers are looking for quick, clean acquisitions, the readiness of these documents can be the difference between closing a deal in three months or losing buyer interest altogether.
3. Business Owners Want a Partner: More Than Just a Transaction
Selling a business can often feel like stepping into uncharted territory for most owners. The uncertainty around valuation, deal structure, and the future of their business post-sale creates stress and anxiety. Many owners I’ve worked with aren’t just looking for a transaction—they’re looking for someone to be there with them, to help guide and reassure them through the process.
This is one of the reasons why, at Alberta Business Sales, we pride ourselves on truly being in the trenches with our clients. Selling a business is a complex, multi-step process, and business owners appreciate having someone to turn to when obstacles arise. A business broker's role isn’t just to find buyers; it’s to stand by the seller, helping navigate negotiations, identifying potential pitfalls, and providing clarity in what can often feel like a sea of confusion.
I’ve seen many instances where sellers initially feel overwhelmed by the sale process but later find relief in knowing they have a team guiding them step-by-step. Whether it’s explaining market trends, walking through deal structures, or simply providing emotional support during those tough conversations, being in the trenches with our clients is what ultimately builds trust and gets deals done. According to industry data, businesses sold through brokers that offer comprehensive support are 2-3 times more likely to close compared to businesses sold without professional assistance.
In conclusion, selling a business is never just about numbers. It’s a deeply personal process, and every client has taught me the importance of flexibility, preparation, and partnership. If you’re considering selling your business and don’t know where to begin, know that you don’t have to do it alone. Let’s roll up our sleeves and get in the trenches together. After all, you’ve already done the hard part of building your business—now, let’s make sure you get the reward for all that hard work.
Heather Miller General Manager, Alberta Business Sales and Commercial Ventures