8 Reasons Businesses Don't Sell - Business Brokers | 1-800-Biz-Broker

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 (as 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 who’s 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 don’t have 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/operating a business

From the Seller Side:

  • Unrealistic price
  • Poor documentation
  • They are not honest about the business and/or its success
  • They have a partner with different goals
  • The Sellers are unaware about the tax implications of selling the business

If you are considering buying or selling a business, give us a call, we are business brokers!   1-800-Biz-Broker

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