Top 5 Mistakes Dallas Business Owners Make When Selling Their Company

By 
Kratos Capital
Posted 
June 25, 2025
News
At Kratos Capital, we have worked with business owners across Dallas and North Texas.At Kratos Capital, we have worked with business owners across Dallas and North Texas.

You have spent years building your business. Maybe you started it in a Dallas garage, grew it into something real, and now the time feels right to move on—whether for retirement, a new venture, or just a well-earned break. But selling a business is not as simple as listing it and waiting for offers. One wrong move can cost you serious money, time, or even derail the deal completely.

At Kratos Capital, we have worked with business owners across Dallas and North Texas who were ready to sell but unsure how to do it right. This guide walks through five of the biggest mistakes we see during the sell-side M&A process—and how to avoid them so you can move forward with confidence and control.

1: Neglecting Proper Valuation

Too many business owners take a guess at their company’s value—or rely on outdated multipliers from online articles. But a real valuation takes into account far more than revenue or EBITDA. Buyers in today’s Dallas market want to see recurring income, growth potential, and strong systems in place. Miss the mark, and you might scare off serious buyers or leave money on the table.

Our team at Kratos Capital helps you get a realistic, market-driven valuation, so you are not just hoping for a good offer, you are prepared to recognize one.

2: Lack of Preparation

Selling a business means showing your work. If your financials are messy, your contracts are disorganized, or key employees are halfway out the door, buyers will notice. Poor preparation causes delays, weakens your negotiating position, and could spook otherwise interested buyers.

We help you organize your materials, tighten up operations, and present your business in its best light—so when buyers come knocking, you are ready.

3: Ignoring Due Diligence

Due diligence is the buyer’s deep dive into your business. They will be looking at everything: taxes, legal exposure, vendor agreements, compliance, HR practices, and more. If problems surface late, it can cause renegotiation—or worse, kill the deal entirely.

We guide you through pre-due diligence before the buyer ever gets involved, addressing red flags early and positioning your company as a low-risk, high-value acquisition.

4: Overlooking Tax Implications

Many owners are surprised by how much taxes eat into their final payout. The structure of your deal—asset sale versus stock sale, timing of payments, allocation of purchase price—can significantly impact what you walk away with.

We work with your accountant or tax advisor to flag these issues early and help design a tax-smart deal structure that supports your long-term financial goals.

5: Trying to Do It Alone

This might be your first and only time selling a business. But buyers—especially private equity firms and strategic acquirers—do this every day. Without experienced guidance on your side, it is easy to lose leverage or miss out on a better offer.

At Kratos Capital, we know the Dallas buyer landscape. We negotiate fiercely, manage the entire process, and help you stay in control from start to finish.

Bonus Mistake: Only Focusing on the Price

Yes, the number matters—but so do the terms. Is there an earn-out? Will you stay on for a transition period? Are you being asked to finance part of the deal? These details can have a major impact on your experience post-sale.

We help you evaluate the full package, not just the top-line number.

Sell Smarter With a Strategic Dallas M&A Advisory Firm

Do not let avoidable mistakes derail your success. Kratos Capital is here to guide you through a smooth, strategic sale of your Dallas business, from valuation through closing. Contact us today to start the conversation.

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