Selling Your Business? Avoid These Costly Mistakes That Could Kill Your Deal
- Tawni Nguyen
- Feb 15
- 4 min read
If you've spent years—maybe even decades—building your construction or home services business, you’re not just thinking about selling; you're thinking about protecting your legacy and making sure you walk away with what you deserve.
The harsh reality? Most business owners leave 30%-50% of their business’s value on the table because they didn’t plan ahead (Exit Planning Institute).
Most business owners leave money on the table when selling—but not you. You’re here because you want the smartest, most profitable exit. Let’s make that happen.
This guide will break down the exact steps you need to take to maximize your sale price and avoid getting shortchanged.
Let’s dive in.
1. The #1 Mistake That Costs Business Owners Millions
If you think waiting until you’re ready to sell is the best strategy, think again.
Buyers love businesses that are organized, scalable, and profitable—but getting there doesn’t happen overnight.
If you want top dollar, you need to prepare 1-2 years in advance.
Rushing into a sale? Expect a lowball offer.
A contractor we recently worked with had a $9M revenue HVAC business. They wanted to sell quickly but had no documented systems, no clear financials, and 40% of their revenue tied to a single client.
This wasn’t a business—it was a house of cards. The moment that single client left, the revenue would collapse.
There were no written SOPs (Standard Operating Procedures), no clear customer contracts, and the owner was heavily involved in day-to-day operations.
Buyers backed away, offering only rock-bottom prices due to the massive risk involved.
Takeaway: If you’re thinking about selling in the next 3-5 years, start prepping your financials, operations, and contracts NOW.
2. What Buyers Actually Look for (and What They’ll Pay Extra For)
If you were buying a business, would you rather buy one that’s a well-oiled machine—or one that’s a dumpster fire of disorganization?
Buyers buy a stream of income, not a job where they have to wear 18 different hats.
Strong Financials: Buyers look for 3+ years of clean financial records. Messy books = low offers.
Recurring Revenue: Businesses with service contracts or memberships sell for 10-20% higher multiples (McKinsey & Company).
Minimal Owner Dependency: If your company falls apart without you, buyers will hesitate—or pay much less. A strong leadership team in place is a big value driver.
Customer Diversification: If one client makes up more than 20% of your revenue, it’s a red flag.
Studies show that over 50% of business sales fall apart during due diligence due to financial inconsistencies, unrealistic expectations, and undisclosed liabilities (Rainier Group).
Pro Tip: Get a third-party valuation done before talking to buyers. It sets realistic expectations and gives you leverage in negotiations.
3. Why So Many Deals Fall Apart
The reality is, many businesses go on the market but never sell.
The reasons?
Common Deal Breakers:
Overpriced Listing: Business owners often think their business is worth more than it is. Buyers walk away when valuations don’t match financials.
Disorganized Financials: If your books are messy or incomplete, buyers will see your business as a risk.
Lack of Transparency: Sellers who hide liabilities (lawsuits, debt, operational issues) kill trust—and the deal.
Uncommitted Buyers: Not every buyer is serious. Vet them like they’re vetting you.
Research from IBBA shows that only 20-30% of businesses listed for sale actually close. The rest fail due to valuation issues, due diligence problems, or mismatched expectations (IBBA Market Pulse Report).
Know what buyers are looking for and prepare accordingly.
4. The “Buyer Trap”: Vetting Who’s Actually a Good Fit
Not all buyers are created equal.
Some private equity firms buy businesses just to slash costs and flip them. Others genuinely want to invest, grow, and keep your team intact.
Warning Signs of a Bad Buyer:
They push for an all-cash deal with no transition period.
They rush the due diligence process (this usually means they’re hiding something).
They insist on a massive earnout structure (forcing you to stay for years to get paid).
They have a track record of gutting businesses post-acquisition.
What Good Looks Like:
A buyer who values the team, customers, and brand you built.
A structured transition plan so your employees and clients aren’t left in chaos.
A fair deal with upfront cash, performance incentives, and a clear timeline.
Vet buyers the way they’re vetting you—because the wrong buyer can destroy everything you built.
5. Exit Planning: The Step-by-Step Timeline
12-24 Months Before Selling:
Get a valuation done.
Document all processes and systems.
Improve profitability and recurring revenue streams.
Reduce owner dependency (start stepping back!).
Address customer concentration risks.
6-12 Months Before Selling:
0-6 Months Before Selling:
Engage with serious buyers.
Begin negotiations & due diligence.
Structure a deal that protects your employees & legacy.
Final Thoughts: Is Now the Right Time to Sell?
The best deals go to the businesses that plan ahead.
If you want to sell in the next 3-5 years, the time to start preparing is NOW.
📩 Want an expert opinion? Drop us an email, Leonard and I have been through it all—good deals, bad deals, and everything in between. If you're considering selling, let's talk.
📞 Let’s build your exit strategy—on your terms.
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