Common Mistakes When Preparing to Sell a Business

Selling a business is never just a financial transaction. For many founders, it represents the culmination of years of effort, investment and identity. That is why preparation matters so much. When it is handled well, it creates options, attracts the right buyers and secures both value and legacy. When it is handled poorly, it can lead to frustration, delays or deals that fail to reflect the true worth of the business.

One of the best ways to improve outcomes is to learn from where others have stumbled. Below are the mistakes we see most often, together with the lessons that can help you avoid them.

Waiting Too Long to Prepare

One of the most common pitfalls comes right at the start: leaving preparation too late. Many owners only begin to think seriously about succession when they are already ready to leave. By that point the opportunity to shape the business properly is limited, and what could have been years of careful planning is compressed into a rushed process.

Buyers want to see evidence of resilience and growth potential. They are looking for clean and reliable accounts, processes that are clearly documented, a spread of revenue across products or customers, and a management team that does not rely on one person to function. These qualities take time to build, and they rarely appear overnight.

That is why the strongest sellers start years in advance. Even if a sale feels distant, early preparation gives you the breathing space to put these fundamentals in place. It also gives you more control over how your business is perceived, because you can point to a track record of strength rather than scrambling to fix weaknesses at the last minute. Planning does not mean you must sell, but it does mean you will be ready if you choose to.

Early preparation also allows you to focus on leadership and succession, which is another area where many businesses come unstuck.

Over-Reliance on the Founder

If every decision flows through the founder, buyers see risk. This is often described as a “key person risk,” and it can have a direct impact on valuation. In some cases it even puts buyers off altogether, because they fear that once the founder steps away, the organisation will lose direction.

The answer is not to step back completely, but to demonstrate that the business can run without you making every decision. Building a second tier of leadership, giving people genuine authority and showing that contracts, operations and customer relationships are not dependent on you personally will reassure buyers that the company has depth.

This process of delegation can take years, and it requires trust. But it brings benefits long before a sale is on the table. A stronger management team makes the business easier to run day-to-day, gives you the flexibility to take time away without worry, and reassures both staff and customers that the company has a future independent of its founder.

Practical issues like leadership can be addressed with planning, but many founders underestimate another factor that often proves just as significant: the emotional side of selling.

Ignoring the Emotional Side

Selling a business is not only about numbers. For many founders, it means letting go of something that has defined their working life and, in some cases, their family identity. The transition can be emotionally complex, not just for the owner but also for long-serving employees and family members who feel connected to the business.

It is easy to underestimate the impact this can have on the deal. When emotions are ignored, they often resurface later in the process, sometimes at critical moments, and they can cause real disruption. We have seen negotiations stall because a founder had not fully accepted the idea of stepping back, or because family members raised objections late in the process.

Acknowledging this challenge upfront is far more effective. That means holding open conversations about succession, preparing staff communications in advance and setting realistic expectations with family. By doing this early, you reduce the risk of last-minute surprises and make the whole process more stable.

Once these personal dynamics are addressed, it becomes easier to turn attention back to the financial details of the deal itself.

Focusing Only on Price

Valuation is always a headline concern, but it is rarely the whole story. The structure of the deal can be just as important as the price on paper. Payment terms, the role expected of the founder after the sale, and the way employees are treated all influence the outcome far more than many owners realise.

For example, one buyer might offer the highest price but expect you to remain heavily involved for years, while another may pay slightly less but allow a cleaner exit. Some buyers bring capital and expertise to grow the business, while others may focus only on cost-cutting. In practice, the “best” deal is not always the one with the highest number.

Owners who take a wider view,  looking at culture, continuity and alignment as well as cash, tends to secure smoother transitions and greater long-term satisfaction. The goal is not just to maximise the sale price but to ensure the business ends up in hands that will protect its strengths and take it forward.

That broader perspective also ties directly into another critical factor: how well your business is prepared for the scrutiny of due diligence.

The Alderway Perspective

At Alderway, we have seen first-hand how careful preparation transforms outcomes. When owners plan early, strengthen resilience within their organisation and think beyond the headline price, they create results that are not only financially stronger but also more sustainable for their teams and their legacies.

For us, selling a business is not just about closing a transaction. It is about guiding companies into their next chapter with clarity and confidence, ensuring that the values, people and culture that made the business successful are not lost in the process. We believe that continuity matters as much as capital, and that the right deal preserves what is most important while opening the door to new opportunities.

A well-prepared sale is never an ending. It is the beginning of a new stage, one that rewards foresight as much as it honours the years of hard work that came before. That perspective is what shapes the advice we give and the support we provide to every owner preparing for this step.