The 5 biggest myths about selling a company – and what really matters
By Andreia Pinto
Published On 28. May 2025
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Selling a company is a complex process – strategic, emotional and often misunderstood. Anyone who goes into this process unprepared is not only risking money, but also the success of their life’s work. It’s time to clear up the five most common misconceptions.
Myth 1: “My tax advisor determined the goodwill - so it fits.”
Many entrepreneurs rely on company values determined for tax purposes. However, these valuations, for example in the context of inheritance or gift tax, are based on simplified procedures with blanket assumptions. Investors, on the other hand, value on a return-oriented basis – based on cash flows, risks and future prospects. A tax value is not a market value.
Myth 2: “Gross purchase price = net revenue”
What looks like a large sale proceeds quickly shrinks in reality: between the gross price and what actually arrives in the account are debts, purchase price structures such as earn-outs or vendor loans as well as tax and legal transaction costs. If you don’t do the math right from the start, you’ll end up with surprises.
Myth 3: “I'll sell later when the price is better”
Timing is not a wishful thinking process. Many wait for better market conditions – and overlook their own influence in the process: age, role in the company and succession capability have a strong impact on the achievable price. Those who plan too late not only lose time, but often also buyer confidence.
Myth 4: “I'm out immediately after the sale”
An immediate exit is rarely realistic. Most buyers insist on a transition phase with the active involvement of the previous owner – especially if they have key customer relationships, expertise or management roles. A gradual handover is not only smarter, but is usually a prerequisite for the full purchase price.
Myth 5: “A company sale works like a real estate sale”
The comparison is flawed: Real estate is a standardized investment property with clear valuation mechanisms. A company, on the other hand, is a complex system with many soft factors – from employee loyalty to innovative strength. It requires an individual valuation and a professional approach.
Conclusion: Sales success begins with clarity - not with hope
Selling a company is not a sure-fire success. If you rely on assumptions and comparisons, you risk disappointment. The good news is that with the right preparation, a realistic assessment and professional support, you can not only achieve a fair price, but also ensure a stable handover.
At Mergers Consulting, we support you – personally, with experience and a clear system. So that your sale not only succeeds, but your life’s work is preserved.
Are you thinking about selling your company? Then take advantage of our free initial consultation. Together we will analyze your current situation and show you which steps make sense now.
“Do you have a question or would you like to arrange a non-binding initial consultation with us? Write to us and we'll get back to you within the next 24 hours.”
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