5 Mistakes to Avoid When You Sell Your Security Alarm Company

Selling a business is hardly ever easy. Mistakes when selling your company can add up and cause you to lose thousands of dollars in the process. You’ve worked hard to grow your business so don’t let a few easily avoidable mistakes stop you from having a successful business sale. With over 200 successful transactions on his resume, Patrick Egan and Egan Security Group are here to help alarm business owners achieve success when it comes to selling their business. Here are five common mistakes to avoid when it’s time to sell your security alarm company.

Mistake 1: Unwillingness to Hire a Professional and Not Finding the Right Broker to Represent Your Security Alarm Company

You may have built your business from the ground up but likely had some help along the way. Having the right team in place is key to growing your business so why not make sure you have the right people in place when it’s time to sell?

Making sure you have the right broker to help you sell your business is vital when it comes to a successful sale.  Trying to do it on your own or going with the first person you meet will likely cost you time and money.  

While not hiring a broker could save you a small percentage in the end, it’s very likely that with a broker’s help you could easily increase sale price and likelihood of closing the sale. Your broker will be responsible for preparing documents, showcasing your company in the best light, identifying the best possible buyers, and guiding you when it comes to closing the deal.

Look for a broker that specializes in your industry.  Hiring someone with experience in the security alarm business will help smooth the process because they understand the unique dynamics of the industry.

Mistake 2: Disengaging from the Sale Process and Not Marketing Yourself

While a broker will have your best interests in mind, no one knows your business better than you do. No one will have the same level of motivation, passion or knowledge about the particulars of your company.  Your broker will bring in qualified prospects, but it’s imperative to promote yourself. This will instill confidence in the potential purchaser that they want to BUY your company.

It’s important to remember that the deal isn’t fully complete until closing. Often sellers become less and less active as the selling process goes on.  It’s vital for sellers to remain involved through the entire process.  Show you care, stay engaged, and finish the job strong.  This will give buyers a clear insight on how easy the transition will be.

Mistake 3: Waiting Too Long to Sell and Not Being Prepared for the Sale

Don’t miss your window of opportunity by waiting too long to list your business. Small businesses can take an average of two years to sell. It’s important to plan for the process to take time and be fully prepared. During the due diligence process, a buyer will look at every aspect of your business. By preparing your business for the sale before listing, it will ensure you have plenty of time to focus on any items that may need addressed.

Look at questionable tax deductions, pending litigations, staffing considerations, and make sure to keep your records up to date.  Always have your business history and files easily accessible. That way when the ideal buyer comes along, you can present your business information quickly and accurately.

Another important aspect often overlooked when preparing your business for sale is replacement planning. How are you going to set your buyer up for success? An offer price will likely be much higher if a potential buyer has confidence that the ease of the transition and continued support has been taken into consideration by the seller.

Mistake 4: Not Accurately Valuing Your Business

Setting a price without going through the proper valuation process can cause major delays in the sale.  Make sure to consider your industry, similar businesses, and the current economy when setting an asking price. If you have an unrealistically high price in mind, it could lead to potential buyers overlooking your business.

At the same time, it’s important not to price your business too low. This often happens when a business owner is burned out, suffering from illness or simply, has not received good advice.  However, by setting your price too low, potential buyers may think there are underlying issues with your business and look elsewhere.

Make sure to do your research and listen to industry experts. By hiring a broker to assist with the sale, you will have someone to accurately perform the evaluation. They will also negotiate the best price when it comes to the sale of your business.

Mistake 5: Not Paying Attention to Confidentiality Considerations

When it comes time to sell your security alarm business, it’s not a great idea to advertise to the public. If customers are aware of the potential sale, it may cause them to question the future of their accounts. New prospects may look elsewhere for service, effecting your incoming sales. When listing, it’s best not to identify your business name or give away any details that might allow people to recognize your company.

A quality broker will always market your business with discretion. They will only provide identifying information to prospective buyers after they have been prequalified and a non-disclosure agreement has been signed.