3 Common Pitfalls to Avoid When Selling Your Business

You've poured years, or even decades, into building your business. When it comes time to sell, it's natural to want the process to be smooth, successful, and rewarding.

But selling a business isn't always straightforward. Even savvy owners can make costly missteps that delay the sale, reduce the final price, or sink the deal entirely. If you're considering a sale, here are three of the most common and damaging pitfalls to watch out for.

1. Misaligned Valuation Expectations

Many owners go into the sale process with a number in mind—but that number doesn’t always match what the market is willing to pay.

Perhaps a friend sold their business for 5x earnings, or a competitor bragged about getting a seven-figure exit. But every business is unique, and value depends on a combination of factors, including profitability, growth potential, owner involvement, customer concentration, and industry trends.

        Why It Matters:

        Overpricing your business scares away serious buyers. Underpricing leaves money on the table. A misaligned asking price can stall the process before it even begins.

How to Avoid It: Get a professional opinion of value early in the process. This will give you a realistic baseline to work from—and help you understand what buyers are looking for and why.

2. Entertaining Non-Serious Buyers

Every business-for-sale listing attracts attention. But not all inquiries are worth your time.

Some buyers are "tire-kickers"—curious but unqualified. Others might submit a Letter of Intent (LOI) with no intention (or ability) to follow through. Worse, some are competitors fishing for confidential information under the guise of interest.

Common Signs of Non-Serious Buyers:

They haven’t secured financing or proof of funds
They avoid answering basic questions about their background or motivation
They ask for sensitive information before signing an NDA
They submit vague or overly favorable offers without due diligence

        The Risk:

        Wasting time on unqualified buyers not only delays your sale—it exposes your business to unnecessary risk, especially if confidential data is shared too soon.

How to Avoid It: Work with a broker who can screen buyers up front. Serious buyers should be financially pre-qualified, sign a Non-Disclosure Agreement, and show a genuine interest in the business before getting access to detailed information.

3. Letting Performance Slip During the Sale Process

Selling a business can take 6–12 months, and during that time, your most important job is still running the business well.

But it’s easy to get distracted—between preparing financials, answering buyer questions, and negotiating terms, many owners unintentionally take their foot off the gas. Sales drop, employees sense change, and customers pick up on the shift.

        Why This Matters:

        Buyers base their offers on recent performance. A dip in revenue or profitability during the sale process can lead to reduced offers—or buyers walking away entirely.

How to Avoid It: Stay focused on keeping operations strong and consistent. Delegate sale responsibilities to your broker, and maintain "business as usual" as much as possible until the deal closes.

Final Thoughts: Set Yourself Up for a Successful Exit

Selling your business doesn’t have to be overwhelming—but it does require the right preparation and guidance. Avoiding these three pitfalls can save you time, protect your company’s value, and increase your odds of a smooth, profitable sale.

At Sundance Financial, we specialize in helping small business owners navigate the sale process with confidence. Whether you're just starting to think about selling or ready to go to market, we’re here to help you avoid common mistakes and maximize your outcome.