10 Reasons Why Businesses Don’t Sell

Sell A CPA Firm

If selling a business was easy, there would be no need for business brokers. Even when you involve a broker, there are several factors to consider to help improve the chances for the optimal terms of your sale.

Below are 10 reasons that we have seen businesses not sell – on both the buyer and seller sides:

Why Buyers Fail to Purchase Businesses:

  • Lose patience and give up the acquisition search.
  • Have not identified and focused on a target business category.
  • Spend too much time analyzing business financials.
  • Not willing to pay the price or act quickly.
  • Not well-financed or liquid when it comes time to do the deal.
  • Do not understand that they need help navigating the business for sale market place.

Why Business Sellers Fail to Sell:

  • Have unrealistic expectations for price and terms.
  • Insist on all cash at closing or are inflexible in negotiating other terms.
  • Fail to promptly provide information requested during due diligence period and contract negotiations.
  • Allow the company’s performance in sales and earnings to deteriorate during the selling process.

An important consideration when buying or selling a business is to “listen” to the other side.  So often, we are so wrapped up in what “we” want that we fail to hear the other side.  There are almost always reasons why someone wants something, and there may be alternative ways to meet those ends. 

Whether you are a buyer or a seller, you most likely cannot have everything your way.  Determine which items are the most important and stand firm on them.  Be prepared to give on other items.

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