Top Mistakes to Avoid When Choosing a Business Sale Partner

Selling your business isn’t something you do often. And the better prepared you are for the process, the smoother—and more profitable—it tends to be.

If you’re like many business owners, you’re trying to make the most of the years—or decades—you’ve put into building it.

But here’s the thing: Selling businesses is rarely easy. It’s an emotional, time-consuming, and sometimes incredibly hard process. That’s why many entrepreneurs lean on a partner—whether a business broker or investment banker—to help guide them.

And that’s where one of the biggest mistakes happens: Choosing the wrong partner.

From qualified business appraisers to investment bankers to transactional lawyers, the right team matters. Here are seven avoidable missteps that can derail the selling process—and how to sidestep them.

Mistake #1: Choosing the Company That Tells You What You Want to Hear

It’s tempting to trust the firm that gives you the highest number. But many owners don’t realize that inflated valuations can tank a deal. A defensible valuation—one that holds up under scrutiny from a prospective buyer or their financial advisors—is far more valuable than a feel-good fantasy.

Be cautious of a broker or investment banker who doesn’t walk you through the valuation process, including the role of financial statements, market conditions, and track record.

Mistake #2: Going for the Cheapest Option Without Understanding the Tradeoffs

Just like hiring a professional advisor, you're not just paying for a service—you’re paying for results. Understanding exactly what’s included can make all the difference. Some low-cost options skip buyer vetting or fail to help with identifying buyers and navigating the tax implications of asset sales vs. stock sales.

This creates risk, especially for complex companies where missing documentation or poor support can lead to stalled deals or bad terms.

Mistake #3: Failing to Prepare for Due Diligence

If you're not ready to present clean financial statements, explain contracts, and disclose any liabilities, things can fall apart quickly. Even experienced private equity groups will walk away if due diligence uncovers red flags.

And don’t overlook the impact of things like transferring contracts to a new owner, unresolved income taxes, or unprepared family members who are involved in operations.

Mistake #4: Underestimating the Time and Effort

The process involves more than posting a listing. You’ll need to stay engaged—packaging materials, vetting offers, coordinating diligence, and dealing with negotiations. Sellers who stay involved and work closely with their advisors are more likely to avoid common pitfalls and delays.

This becomes even more important when the economy dips. A poor economy can stretch timelines and reduce buyer interest—making it even more essential to work with a partner who knows how to adapt.

Mistake #5: Not Asking About Buyer Quality

One of the common mistakes is assuming every interested party is serious. But unqualified leads create headaches. Whether you're offering seller financing or not, the last thing you want is a deal that collapses late in the game.

The best partners screen for intent, financial ability, and strategic fit—addressing major concerns before they turn into deal-breakers. Some even provide early tax implications advice based on buyer structure—saving time and money later.

Mistake #6: Signing a Long-Term Agreement Without Clarity

If your managing director or lead contact goes silent post-signing, you’re in trouble. Ask what happens if the business doesn’t get traction. Understand your exit terms. And know whether you're on the hook for a significant amount in fees if things stall.

Mistake #7: Ignoring Fit and Communication Style

Many business owners underestimate how much time they’ll spend with their advisor. If they can’t explain sensitive information clearly or aren’t aligned on the steps ahead, the process suffers.

Don’t ignore the red flags. If the firm avoids tough questions, won’t disclose how they vet buyers, or glosses over the tax implications, it’s time to walk.

What the Right Partner Looks Like

They provide a fair price based on a defensible valuation, support you through due diligence, and simplify the complicated process of selling—even when deals involve seller financing or sensitive exit scenarios.

They’ll prepare you for both asset sales and stock sales, help manage sensitive information, and connect you with trusted financial advisors and transactional lawyers when needed.

Why Baton Was Built to Solve These Problems

At Baton, we’ve seen many entrepreneurs struggle with outdated processes, insufficient preparation, or overpriced brokers. 

So we built a platform that solves all of that:

• Accurate valuations, done by a qualified business appraiser

• Pre-vetted buyers, including private equity groups and operators

• Transparent support, from listing to close

• Weekly updates so you always know what’s next

And we do it all at a fraction of the cost.

Thinking of selling your business?

Avoid the seven common mistakes most sellers make. 

Get a free, accurate valuation today and see what the right support looks like—clear, data-backed, and built to help you sell at the right price.