Founders often stumble on the same pitfalls when it’s time to exit.
Here are 7 common mistakes—and how to avoid them:
1. Forgetting that deals are built on relationships
People drive deals—not contracts. Start building relationships before you need them, and keep them strong throughout the M&A process. Relationships impact everything, including the multiple you’ll ultimately get.
2. Neglecting trust-building
Trust is your greatest leverage. Deals inevitably hit bumps, and trust helps you recover when things go sideways. Be transparent, reliable, and show up consistently as a dependable partner.
3. Delaying bad news
Bad news doesn’t age well. Share it early, giving the buyer time to process. Surprises kill deals faster than the worst news delivered promptly.
4. Not internalizing that time works against you
The longer a deal drags on, the more risks creep in—market changes, regulatory shifts, buyer fatigue, leadership turnover, etc. Stay focused on what you can control and keep things moving.
5. Underestimating the distraction of selling
Selling your business can be all-consuming. If you’re not prepared, the business itself may suffer. Prep your team, stay focused, and keep executing.
6. Getting emotionally attached to one deal
Deals fall apart often, even post-LOI. Keep options open and don’t pin everything on a single outcome.
7. Not running your business like you’ll own it forever
Act like you’ll own your business forever. Buyers want stability, so show them a business that’s growing and running at full steam. If the deal falls through, you’ll be glad you did.
Exiting is tough for any founder, no matter how many exits they’ve done.
What other mistakes do you see founders make repeatedly?