How to Increase Your Chances of Selling a Business.

Selling a business is a complex and often contradictory process. For example, sellers typically don’t want customers, employees, landlords, suppliers, or even immediate family members to learn that their business is for sale, as this might damage the business’s success. Yet a business owner needs everyone else to know it’s for sale so they can get the highest price possible. Ultimately, this will increase the chance of selling the business.

Why a Business Doesn’t Sell.

Here are 8 reasons why a business does not sell and what you can do to increase its chances of selling.

1. The seller initially thinks he is serious about selling, but gets into the process and realizes how difficult it can be, and then changes his mind.
2. The seller fears having nothing to do after the sale and changes his mind. Working and running the business provides structure and familiarity. Once the business is sold, that concern will disappear, and so the fear stops the seller from moving forward.
3. Receiving few or no offers after listing the business for sale. The seller thinks he may not get what the business is worth and removes it from the market.
4. The next phase of life that the seller had planned, such as going back to school or looking after the grandkids, suddenly seems less appealing than continuing with the business.
5. The seller thought they had the best business in the world and expected to receive all cash. When that doesn’t happen, they decide not to sell.
6. Due diligence reveals an environmental, governmental, or legal issue outside the buyer’s risk tolerance.
7. The seller wants too much for the business and isn’t willing to accept what the market is willing to pay.
8. The seller cannot provide the necessary books and records to support the income, expenses, and profit they claim the business has.

Do you have other reasons you can add to the above list?

Your thoughts and comments are always welcome.

Prevent those Reasons from Derailing Your Business Sale.

1. Understand difficulties right away. Create a plan to address them, and consider hiring a business broker for assistance.
2. Create a plan before listing your business for sale. Stick with it and make sure it is something you look forward to.
3. Be patient. It takes time for a business to be discovered. The right offer will come with patience.
4. See #2. Ensure that your plans align with what you genuinely want to do before deciding to sell your business.
5. Familiarize yourself with the types of businesses for sale and what to expect during the closing process. Ask questions of a professional business broker.
6. Do your due diligence beforehand. Be aware of potential issues and communicate them openly with buyers before they make an offer.
7. Know your business’s worth and its market value before listing it for sale, and be realistic.
8. Prepare your business for sale by reviewing and updating your financial records to ensure they are ready for a buyer’s review.

There is a risk associated with selling a business, so increase your chances of a successful sale by being prepared.

Are you considering selling your business and taking on your next challenge?

Would you like to know the value of your business?

For more information, please refer to this article on business valuation.

For more immediate assistance, you are welcome to send an email to Andrew Rogerson or call (916) 570-2674.