For how to fix each one, from pricing on provable profit to getting three years of books ready, read the article Why do so many businesses never sell?
Transcript
A lot of businesses that go up for sale never actually sell. Here are three mistakes that keep them stuck.
The first mistake is pricing your business off your gut instead of the market. Buyers and their banks go off the profit you can actually prove. So if your number doesn't match your tax returns, the bank usually won't finance the difference.
The second is a business that can't run without you. If every customer and every decision goes through you, the buyer really isn't buying a company. They're buying a job.
And the third is when your books aren't ready. A buyer and their bank are going to ask you for about three years of tax returns and financials. If it takes you weeks to pull that together, they start to get nervous.
The good news is all three are fixable. They just take time. So start well before you list.
So which one sounds like your business? Let me know in the comments.
Thinking about buying or selling a business? Talk with me about selling, or browse the video library.
