Giving staff a raise – unless it’s a planned annual increase, giving your staff a significant raise will lower your profit line and may make your firm less desirable. Staff raises should be left to the Buyer to negotiate with their new employees.
Signing a new Lease- If you are planning on Selling, signing a new and/or lengthy lease will affect the pool of Buyers you will have. We highly suggest going month-to-month or discussing with your landlord whether or not they would allow the Buyer to assume the lease once sold. Many Buyers already have their own location and adding an additional office or being forced to move from theirs is not a possibility. Keeping location choices flexible is always best.
Misrepresenting your revenue – this may seem obvious, but people still do it. Much of the Selling process is based on trust, but the other part is based on facts in the form of financials. Misrepresenting the amount of revenue you have will always come out in the end and result in the sale being cancelled by the Buyer. This can also cause a drastic drop in your original list price and/or default of your Representation Agreement between you and your Broker.