8 Reasons a Business Doesn't Sell

Posted by on Thursday, June 29th, 2017 at 12:58pm

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Not every business listed for sale will ultimately sell. In fact, some trade groups in our industry have stated that less than 10% of businesses that are listed "for sale by owner" will actually sell!  They go further and say that businesses that are listed by Business Brokers actually have a 40-50% probability of selling.  That's a 4 to 5 times improved rate of success, when a business uses a business broker!  As a business broker, this is great, but I know why this is the case.  I, myself, as well as other Business Brokers (at least the good ones), screen the businesses we want to work with.  We have limited time and resources, so we want to take on clients whose businesses we KNOW have a greater chance of selling.

There are a number of reasons why business don't sell.  Here are a few...

From the Buyer Side:

  • They long to be a business owner, but they really lack the risk profile to actually pull the trigger

  • They are influenced by a partner or spouse to not buy a business

  • They have no concept or are unrealistic about the commitment, resources, process, or risk that is inherent in buying or operating a business

And From the Seller Side:

  • They may have an unrealistic price

  • The sellers have poor documentation

  • They are not honest about the business and/or its success

  • They may have a partner with different goals

  • And one of the biggest reasons the businesses don’t sell, The Sellers are unaware about the tax implications of selling the business

Buying or selling a business is very involved process.  If you are considering buying or selling a business you should really consider meeting with a Business Broker.  Give us a call, at 1-800-Biz-Broker or contact us at www.1800bizbroker.com

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