10 Mistakes that Sellers Make

By Michael D. Rubin, CEO & Founder · Updated September 2026 · 742 words

The costliest mistakes sellers make are going to market without knowing what the business is worth, going unprepared, and judging offers by headline price instead of structure. Most owners sell a company once, so they learn the process as they go. The ten mistakes below are the ones that most often reduce the price or end a deal, grouped by the stage where they happen.

None of them is unusual, and each can be avoided with preparation, the right advice and a clear view of your own goals before the first conversation with a buyer.

Before the company goes to market

• 1. Not knowing the value. The market sets the final price, but you need a credible range first. Without one, you either scare buyers off with an inflated figure or accept too little. A proper opinion of value starts from a financial recast, which restates earnings by adding back owner-specific and one-time costs.
• 2. Skipping preparation. Financial statements, tax filings, contracts, leases and licenses should be current and ready before the first buyer asks. Scrambling to produce documents mid-deal kills momentum, and lost momentum is how deals die.
• 3. Seeing the business only through your own eyes. Every company has weak spots. Buyers will find them. Identify them first and decide how to address or explain each one.
• 4. Waiting too long. Many owners sell after results have slipped, after burnout sets in or after a partnership sours. The best time to sell is while the business is performing well and you still have energy; see when is the right time to sell.

While buyers are looking

• 5. Not knowing the buyer. Why does this buyer want your company? What have they bought before? If you will carry a note, can they pay it? The better you understand a buyer's motives, the better you judge when to hold firm and when to give.
• 6. Chasing buyers who will not buy. Some prospects want only a perfect business, only their own terms, or have too many people who must approve. Time spent on them is time taken from serious buyers and from running the company.
• 7. Trying to do it alone. Owners who act as their own broker, attorney and accountant usually discover the gaps late, when patience runs short and mistakes are expensive.

At the negotiating table

• 8. Looking only at price. A high number with a large earnout, a long seller note or heavy conditions can be worth less than a lower all-cash offer. Structure, timing and risk decide what you actually keep; the guide on how to compare offers shows how to weigh them.
• 9. Being unable to walk away. After months of effort it is hard to let a deal go. But a deal that cannot be fixed should end. A bad sale is worse than no sale.
• 10. Changing your mind late. Second thoughts near closing, often prompted by a friend who says the price is low or by the sudden prospect of life without the business, can unravel a good deal. Settle the personal question before you start.

Asking price, value and the price you get

Owners often blur three different numbers. The asking figure is what you hope for. Fair market value is the price a willing, informed buyer and a willing, informed seller would agree on without pressure. The selling price is what you actually receive once terms are negotiated. The work of preparation and a competitive process is closing the gap between the first and the last.

For a profitable company with $3 million to $100 million in revenue, the value most often lands between three and seven times adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, adjusted for owner items. Where a company falls in that range depends on risk, growth and how well it is presented. Any opinion of value you receive should come with reasons: which factors push the number up, which pull it down, and what could change it before a sale.

How MDR & Associates helps owners avoid these mistakes

Our ten-step process is built around them: a discovery meeting and opinion of value before anything else, a prepared marketing package and recast, buyers who sign a confidentiality agreement and prove they can fund the deal, and multiple letters of intent so no single offer sets the price. A principal of the firm is in every negotiation. The first step is a free valuation snapshot.

Where this fitsSell your business in Texas →

Questions owners ask next

How do I know if a buyer is serious?

Serious buyers sign a confidentiality agreement, share proof they can fund the purchase, ask detailed questions about the business, and move at a steady pace. Buyers who avoid showing finances, keep changing terms or cannot say who makes the final decision deserve caution.

What if I have doubts partway through the sale?

Raise them with your advisor early rather than near closing. Sometimes the answer is a longer transition or keeping a minority stake. If the doubt is about selling at all, it is better to pause before signing a letter of intent than to back out after.