Depending on which report you read, only 7%-30% of businesses that are put up for sale will actually sell. This is quite a sobering fact for any business owner that is considering selling their business. There are of course a huge number of different reasons why businesses may or may not sell but when you realise the market average is as low as it is you begin to realise that there are a number of things to get right to help you achieve the sale of your business.
The sale of businesses is not something that is easily known about unless you are specifically looking for a business to buy. It is very rare for businesses to want a ‘For Sale’ board put up on their building and therefore most businesses are marketed online through dedicated business sales websites or by word of mouth and connections of the agents involved in the marketing of the business for sale.
Much like the residential housing market, the likelihood of a business selling will be dictated by how realistic the asking price is. Of course this is not the be all and end all to achieving a sale but if priced correctly the business will get interest and enquiries. How to value a business is another article completely but assuming it has been priced correctly you would hope to see a decent level of initial interest. Of course once someone gets more information on the business itself that may well put them out of the running as they realise it is not what they are looking for. This is a key part of the process. We always tell our vendors that we would rather work with a small quantity of high quality buyers than a high quantity of poor quality buyers. At the end of the day, we only need to find the right buyer once to complete a deal.
Once you have initial interest from a quality buyer, it is vital to be able to answer any specific questions they have and even more important to be able to back up any answer you give or information you provide with the right paperwork. If you tell a buyer you take £500,000 per annum but the accounts say only £300,000 this will put them off.
There are still many factors to consider when selling a business and ensuring that you get them right will help you to increase your chances of selling your business. At Essex Business Sales we help our clients through every stage of the process and look to sell as many businesses that we can. It does not always happen but we understand the reasons why and can advise on how to improve your chances of selling.
If you have a business in Essex and would like a FREE valuation and to understand more about how we might be able to help, please get in touch and call 01245 835088.