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Across the U.S. in the business brokerage industry, a large percentage of businesses do not sell in the first year they are on the market. This is due to several reasons, but the most common reason is that the business owner has unrealistic expectations about something related to the transaction. At Bernard Benjamin Associates, Inc. we always allow the client flexibility based on their personal preferences, but we do educate clients on what will improve the likelihood that the business sells quickly at a good price.
So what issues should a business owner expect when selling a company? A few key items are listed below. When you meet with a Bernard Benjamin representative, he or she will provide you with more details.
Businesses with unrealistic price expectations may still receive several inquiries, but rarely receive offers close to the owner's expectations.
Businesses without at least some seller financing are much more difficult to sell. Even a minimal amount of seller financing improves the marketability of a business and helps buyers obtain Small Business Administration financing.
Most businesses take a while to sell. It is common for businesses to take 6 months to 1 year, and trying to shorten the process can increase the odds that the business is not sold.
Selling a business requires preparation to pull together the information a buyer will require. If the preparation is not done up front, buyers often lose interest due to delays or a lack of information.
When a buyer makes an offer for a business, it is conditional upon a careful review of the business in due diligence. Therefore, a business owner should never assume the business is sold until it closes.
Bernard Benjamin Associates
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