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Business Is Overpriced :
Industry statistics indicate that the #1 reason why most small businesses don't sell is because they are
perceived as being overpriced. Its very important for business
owners/sellers to establish a realistic and credible
asking price for their business that can be supported on
a number of levels, including financial history and
market comparables.
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Insufficient Business & Financial Information :
It is imperative that sellers prepare and provide
sufficient information to prospective buyers such as a
business summary profile, equipment list, and most
importantly, current and past financial statements.
Most buyers will not move forward with a business purchase unless
their is sufficient information to validate the target business
is a good investment. View a
business preparation guide.
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Seller Is Not Negotiable Or
Flexible: In
most small business sales/transactions there are usually going
to be a number of issues and terms the Seller may have to
show some flexibility in order for the buyer to feel
comfortable enough to move forward. A good example of
this would be offering some type of seller carry back
with terms, as most banks will not provide financing for
a lot of small business acquisitions.
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Seller Is Not Motivated :
Sellers should be prepared to spend time with
prospective buyers to properly show business, and
provide sufficient (qualified) information in the sales
process when requested. This is most important after a
purchase contract has been signed and a buyer has begun
the due diligence process to determine if the
information represented and presented by the seller can
be validated to the buyer's satisfaction.
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Insufficient Market Exposure :
Sellers should be prepared to have their business
confidentially listed and marketed for a minimum of 6
months. The AZ Business Broker hired to market and sell
your Arizona business should offer or have access to multiple
advertising and marketing venues to generate sufficient
buyer inquiries and ultimately offers to purchase. Finding the right buyer for
any small business is ultimately a numbers game.
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Customer Concentration :
Sellers should be keenly aware that having any one
customer or client who accounts for over 30% or 40% of
your sales may be considered a risk factor by some
buyers and lenders.
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New or recently established
business: For a number of reasons it is often very
challenging to get a buyer to move forward on purchasing
a business that has been established ess than 2 to 3
years.
