Top Reasons Why Some Businesses Don't Sell

Below is a list of some of tbeyond.he top and main reasons why some small businesses don't sell in the Arizona market and beyond.

1.Business Is Overpriced: Industry statistics indicate that the #1 reason why some small businesses don't sell is because they are 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.

2.Insufficient Business 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.

3.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.

4.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.

5.Insufficient Market Exposure : Sellers should be prepared to have their business confidentially listed and marketed for a minimum of 6 months. The Business Broker hired to market and sell your business should offer or have access to multiple advertising and marketing venues to generate sufficient buyer inquiries and offers. Finding the right buyer for any small business is ultimately a numbers game.

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.