WEBINAR: Strategic Insights for High-Value Business Exits
Private Executive Briefing: The Biggest Mistakes Owners Make Before Selling a Business
BSL hosted a Private Executive Briefing with a panel of trusted experts on business law, valuation, and exit readiness. The discussion uncovered what really drives value—and the silent missteps that quietly cost owners millions. Due to unforeseen circumstances, Mitesh Patel could not attend, but Nathan Johns participated in his place.
Read on for a quick recap of the biggest makes owners make before selling a business.
Before a sale, many business owners unknowingly put millions of dollars at risk. One of the most common issues is failing to focus on the number that actually matters in a deal. Too often, owners get caught up in valuation while overlooking critical details in their documents and company structure that can lead to steep discounts at closing.
Some of the most costly mistakes include:
Outdated or incomplete operating agreements: Many owners haven’t looked at them in years, leaving key terms unaddressed as their business and tax laws change.
Unclear ownership records and cap tables: Phantom equity, forgotten profit-sharing participants, or old SAFE notes can suddenly resurface and complicate a deal.
Unassigned intellectual property: Contractors or employees may have created essential assets without proper assignment, calling ownership into question.
Poorly documented contracts and compliance gaps: Especially risky in industries with heavy regulation, missing employment or contractor documentation can raise red flags.
Tax structure misunderstandings: Owners often believe they filed an S corp election, only to find out later they didn’t—or can’t locate the paperwork, jeopardizing deal terms.
Perhaps the biggest overarching mistake, though, is failing to see the business through a buyer’s eyes. Buyers aren’t there to make sellers happy; they approach deals logically and will use any oversight as leverage to lower the price.
By investing time upfront in cleaning up documents, clarifying ownership, and organizing tax and compliance matters, owners can avoid leaving seven figures on the table—and position their businesses for a smoother, more profitable sale.
Learn more by watching the full webinar and subscribing to Blue Sky Law’s Youtube Channel to stay updated on the latest in Business Law.
Final Thoughts:
Selling a business doesn’t happen overnight—but with the right process in place, it can feel a lot more manageable. If you’re thinking about selling or simply want to explore what the future could look like, we’d love to talk. At Blue Sky Law, we help business owners navigate every step with clarity and confidence.
Interested in learning more? Reach out to schedule a consultation.