The mistakes that cost Singapore owners the most
Eight errors that show up directly in the final price, and what to do instead.
Every one of these is common, and every one of them is avoidable.
Negotiating with a single buyer
An unsolicited approach is flattering and it is the weakest position you will ever negotiate from. Without an alternative in the room, every concession is one-way. If someone has approached you, that is the moment to run a process, not to skip one.
Going to market unprepared
Messy accounts and missing paperwork do not just slow diligence. They hand the buyer a documented reason to re-price after you have emotionally committed to the deal.
Confusing owner income with business profit
Until personal expenses, above-market or below-market director salary and one-off items are separated out, nobody knows what the business actually earns, including you.
Being indispensable
If the business needs you, the buyer is not buying a business. They are buying a job that depends on you staying, and both the price and the structure will say so.
Overstating the add-backs
Adding back the owner salary without deducting a replacement manager’s cost is the classic. The buyer’s accountant finds it immediately and then re-checks every other figure you have given them.
Letting the deal go quiet
Momentum is an asset. A buyer with an unanswered question for three weeks starts wondering what else is slow. Enthusiasm has a half-life.
Signing a term sheet you have not read properly
Exclusivity length, earn-out mechanics, warranty periods, what counts as a material adverse change. All negotiable before you sign, almost none of it afterwards.
Telling the team too early, or too late
Too early and you risk losing people before there is a deal to lose them over. Too late and the buyer inherits a team that feels ambushed. Plan the announcement as part of the transition, with a date and a script.
Read next
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Succession planning for Singapore SME owners
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