Depends on whom you are asking. If you’re the seller, you might say that the asking price is too low. The buyer would say, obviously, that the asking price is too high. How can they both be right? Who decides?
Most sellers have an idea of what they want for their business. It can be based on their knowledge of the industry and what similar businesses have sold for. It may be, however,...Read More
What are the odds of your business actually selling once you have made the decision to sell? Well, if the annual sales of your business are $750,000 or less, research indicates that the odds of your business selling are only 18 percent. If your annual sales are $750,000 to $2 million, your odds increase to 25 percent. If your annual sales volume is above $2 million, the odds increase to 30 +...Read More
There was a study done, years ago, that showed that the reason businesses were for sale had a direct relationship to its probability of sale.
Reason for Sale
%Reason for Sale
%Probability of Sale
Retirement
10-15%
30-35%
Health Problems/Death
15-20%
25-30%
Partnership & Family
Problems/ Divorce
5-10%
15-20%
Burnout/Other Business
Investments
15-20%
15-20%
Under-capitalization...Read More
Many people who are selling their business think that once they find a buyer, the business is sold. Unfortunately, the real work is just beginning. Once a buyer is interested, there are the inevitable questions that must be answered. After the questions are answered and the buyer has satisfied himself or herself that the financial aspects of the business are satisfied, the buyer is probably...Read More
Prepare for new management. As soon as you make the decision to sell, begin doing what you can to help the business run “on its own.” The business should not, especially now, be just you!
Accept the financing facts. You’ll likely be financing the sale of your business, since banks are traditionally unenthusiastic about loans for the purchase of most businesses.
Make sure...Read More
