After months on the market, you are no closer to a business deal than the day you put the official word out that your business was for sale. Prospective buyers have come. Prospective buyers have gone, and still no sale. You are downright stumped. Why hasn’t your business sold? Here are four reasons why your business may still be on the market—and how to spring in to action so you can see some green this Spring.
It’s in Bad Shape: No one wants to offer a seller six figures on a business that has no books and records, or records that make no sense. Nothing frustrates a prospective buyer more than asking for current financial statements and tax returns, only to be told that they are not available. This is a major red flag for a prospective buyer. How can a business run efficiently without current and accurate financial statements? The short answer is that it can’t. As a business owner, you must anticipate the purchaser’s questions regarding all financial matters and have current statements readily available to defend your answers.
It’s Uninviting: If you surfaced cleaned and called it a day, that’s not good enough. When it comes down to showing your business to buyers, every corner and crevice should pass the white-glove test. Your business must look exceptionally clean, bright and well organized. Having looked at your business every day, you may not see the areas where improvement can be made. However, these areas will stand out like a sore thumb to a potential buyer. The goal is to greatly improve the success of a sale, and a business broker can provide you with a list of the things that you should be doing to maximize your chances of success.
It’s Too Pricey: We know you love your business and you want to make as much money on it as you can. However, if your business has never looked better and still is not selling, you may want to reconsider your asking price. While every business owner expects to negotiate the price, setting the price too high may scare off potential buyers before they even start to investigate your business. A price adjustment may be the only thing standing between you and a fast deal. A broker can assist you with a business valuation, setting a fair and realistic price that still allows some room for negotiation.
It’s Not a Priority: The perfect price and condition will not mean much if buyers do not know your business is even available for purchase. Sure, most buyers these days conduct their own online searches, but if your listing is not actively being marketed, it is continually being missed. For this reason, it’s important for a seller to have someone on their side who not only knows the market, but also knows where to locate potential buyers. A business broker will know how to find and reach the best prospects for your business—and they won’t stop until you have a deal!
If you’ve done everything in your power to make your business shine and no one’s noticed, it might be time to spring into action and hire a business broker. If you would like to know more about how to maximize your business sale, we can put you in touch with a professional business broker in your area who has earned the 1-800-BIZ-BROKER seal of trust. Call or visit our website at www.1800bizbroker.com.