News & Events
Selling Your Business -- What's The Reason?
ENLIGN DEAL TEAM | 06/27/2012
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|
|Partnership & Family Problems/ Divorce||5-10%||15-20%|
|Burnout/Other Business Investments||15-20%||15-20%|
|Profit Motivated Only||5-10%||0-5%|
The financial records better be complete, all information available - and the seller must have a valid reason for sale. It is evident from the results above that such reasons for sale as: retirement, health issues, family problems followed by "burnout" have the highest probability of sale. Burnout is not a new issue, but it is generally preceded by many years of doing the same thing. It's difficult to accept burnout from a seller who has been in business for only a short time. There is an old saying among business brokers and that is that it takes a willing seller - and a willing buyer to complete a successful sale. The moral of all this is that the more valid the reason for sale, the better the chance the business will sell quickly - and without undue problems.