On the surface, selling your business on your own can seem appealing. You may think: “I know my business better than anyone else, so why bring in outside help?” Or maybe you want to save money by avoiding accountants, attorneys, or brokers.
The truth is, while you technically can sell a business on your own, it’s rarely the best choice. Selling a business is one of the most complex financial and legal transactions an owner will ever face. Without professional guidance, you risk undervaluing your company, making costly tax mistakes, or even seeing a deal collapse entirely.
In this article, we’ll cover seven major risks owners face when they make the “leap of faith” and try to sell their business on their own:
The Seven Major Pitfalls of Selling Your Business By Yourself
1. Undervaluing the Business
One of the most common mistakes owners make when selling on their own is setting the wrong price. Without a clear, objective valuation, it’s easy to undervalue your business and leave tens (or even hundreds) of thousands of dollars on the table. Owners are often too close to their business to see things through the buyer’s eyes.
A professional valuation, backed by market data and proven methodologies, ensures you know the true value of what you’re selling.
2. Overvaluing the Business
On the flip side, many owners set their price too high. You might base your asking price on gut feeling or years of hard work, rather than market realities. Overpricing can scare away qualified buyers before they even consider making an offer. Even worse, a business that sits on the market too long starts to look “stale”, making buyers question what’s wrong with it.
Professionals know how to price strategically, balancing maximum value with market expectations. This makes sure that your business will attract the right buyers at the right time.
3. Limited Buyer Reach and Negotiation Power
When you sell on your own, your pool of buyers is usually limited to your personal network or whoever happens to respond to your listing. That’s usually an incredibly small slice of the overall potential market.
Brokers and advisors, on the other hand, bring networks of qualified buyers who are already looking to buy a business. They also have the marketing strategies and experience to create competition of people bidding for your business. More buyers means stronger offers, and more leverage for you at the negotiating table.
Without this reach, you may end up having to settle for the first offer that comes along, even if it’s far from ideal.
4. Legal and Contractual Pitfalls
Selling a business involves stacks of contracts, disclosures, and compliance requests. Miss one detail, and you could find yourself facing lawsuits, liabilities, or a deal that unravels at the last minute.
Business attorneys know how to structure agreements that protect you. They ensure contracts are enforceable, liabilities are clearly defined, and your rights as a seller are safeguarded. Going it alone often means relying on generic templates, handshake deals, and assumptions, which can create major problems down the road.
5. Tax and Financial Consequences
How much money you get to keep after selling your business is significantly impacted by how you structure your deal. For example, structuring the deal as a stock sale or an asset sale can have very different outcomes for your tax bill.
Without proper planning, you could face unexpected capital gains taxes, double taxation, or missed opportunities for deductions. Accountants and tax advisors help structure deals in ways that maximize what you take home after taxes. Trying to handle everything on your own can cost you far more in the long run than you’d ever save by avoiding professional fees.
6. Confidentiality Risks
Selling a business requires sharing sensitive information, including financial records, customer lists, contracts, and more. Without safeguards in place, this information could easily fall into the wrong hands.
Competitors may try to use this information to their advantage. Employees or customers who hear rumors of a sale may panic, leading to disruptions. Professional advisors know how to maintain confidentiality, using NDAs and discreet processes to protect your business until the deal is done.
7. Time, Stress, and Distraction from Running the Business
Perhaps the most overlooked risk of selling your business on your own is the sheer time and energy it takes. Marketing the business, screening buyers, negotiating terms, and managing due diligence is essentially a full-time job.
The more time you spend managing the sale, the less time you spend running your business. If performance drops during the sales process, buyers will notice. Professionals will handle the heavy lifting so you can stay focused on keeping your business strong and attractive to buyers.
Selling a business is too important to risk going it alone. While you may save on professional fees upfront, the hidden costs can far outweigh any savings. Working with experienced professionals ensures your sale is handled properly, confidentially, and profitably. The right advisors don’t just protect you from risk; they help you achieve the best possible outcome.
Before you decide to sell your business on your own, ask yourself: “Is it worth the risk of leaving money on the table or exposing myself to costly mistakes?” For most business owners, the answer is clear: professional help isn’t an expense, it’s an investment in a successful sale.
Looking to sell your business? Working with a team of seasoned professionals will help you improve the sellability of your business long before you put it on the market. Give us a call at (833) 609-0388 or get in touch with us online today to get started.