A new survey out today says that Canadian entrepreneurs aren't as smart as they should be when it comes time to selling their businesses.
Newport Partners, a Toronto-based financial advisory firm, says its poll reveals that many business owners are waiting until they get an offer before they address key issues in selling a business. They haven't prepared their business for sale and they don't have the systems in place to extract maximum value, which means they're not negotiating from strength, and they're leaving money on the table.
I was also intrigued by the survey’s finding that “sellers' remorse” is surprisingly common. The former owners don't regret selling, but they may regret their failure to get the best deal for themselves, or for their management, staff and customers.
They also have lots of advice for business owners who haven't sold yet.
For more on the survey, see my column in today’s Financial Post.
You can also read Newport’s press release here.