A business owner in Tampa preparing to sell their business should be aware of the shocking fact that 4 out of 5 businesses listed don’t sell.
Why don’t they sell?
Actually there are 66 reasons why businesses don’t sell
This is a comprehensive list of all the obstacles to a successful sale. It is an excellent check list to identify any of the obstacles that might apply to your situation. Considering all 66 reasons – the single most important reason is that the business was not priced correctly. A recast will solve that problem and will allow a asking price to be justified to a prospective buyer.
Overall most business owners fail to plan for the sale of their business. Selling a business is not like selling a house. Eventually almost all houses sell, but as previously stated, 4 out of 5 small businesses listed don’t sell.
It takes some forward planning to:
- Identify the obstacles faced by business owners when selling.
- Overcome or at least minimize the effect of the obstacles
It’s worth mentioning three obstacles from the list of 66 reasons why businesses don’t sell
- Poor books and records. If your business has a poor accounting system, it’s a huge obstacle to a successful sale. Inadequate financial records create red flags and doubt. Once skepticism and distrust arise in a buyers mind, a successful sale transaction is highly unlikely.
- To be considered a salable business, owners must have reasonable expectation as to the value of their business. It’s important to know the realistic value of your business and price it accordingly. The only way to determine value is to recast the tax returns. Buyers in Tampa with a good broker will never overpay for a business.
- A business owner trying to sell their business in Tampa will have to prove the cash flow to a buyer – if he can’t – the business won’t sell
Avoid all 66 reasons a business doesn’t sell – let me sell your business –