Selling a business is not a simple business. In fact, a business for sale is becoming more than we would like throughout the escrow just to fall out until the end, for various reasons. Sometimes the reasons are legitimate times, they are completely stupid.
Here we will address the best issues that prevent a company from selling.
An expensive deal. This should be as obvious as the morning sun, but that is the top reason why businesses are not sold. The sellers ask more than the business is worth. A broker should be able to get a fairly accurate perception of what a company is worth based on gross sales, costs, assets and the market. But many brokers fail to tell the seller the bad news, that the business is not worth what you ask, or they do not really know how to find out and let the seller decide the price, where higher is always assumed better. Whatever the reason, overpricing kills a sale. Buyers can not offer anything that they consider to be highly overvalued - or - in response to an unrealistic price, they compensate by making an offensive low offer.
An unjustified seller. If a seller really cares if the business sells or not, and just throwing out a hook to see if something bites, the chances are that the property or deal will be a tough sale. People find ways to make things happen when they are motivated inversely they will look for ways to avoid things happening unless they are motivated. A seller of a company must WANT to sell a company.
Bad books and recording. Businesses for sale can look good on the ads and attract many interested buyers, but if the books are messy or non-existent, a buyer with a brain will probably not spend money on a painful promise. If a company claims to make money, the books show better. If not, why not? Im surprised how some business sellers think buyers would just believe in them. Buyers are no different than sellers, and need to see the numbers for making an intelligent decision.
The seller wants all the money. Heres another business murderer - the seller needs all the money. No seller carries and no loan. The problem here is quite obvious. Not too many people sit in tens of hundreds of thousands in cash and ready to spend it. Usually, these people are interested in buying larger companies, and use their money as repayments. When sellers become demanding on terms, especially during these slots, their business for sale does not require much attention.
The owner is the primary to the business. A lifestyle company that sounds heavy about not completely the owners personality or relationships or skills will be difficult to sell. This reality can come out in due diligence, when buyers begin to realize the full income is based on the woman who sells the company, her skills and talents and attractive factors and they can not duplicate her.
The product or service is outdated. The seller wants to sell because his market dries up. Obvious. Why not sell your business before you have to close the store? Well, heres again where sellers have to think as buyers. The golden rule applies to business as it does everywhere. Make others When a buyer examines the market for the product or service and seeing the way for typewriters and video cassettes, he will not spend any big money just to see it burn. Hell walk, just like the seller should.
The business requires a license. Many companies require licensing, especially in California, where someday you may need a permit just to use the toilet. Trades, Professional Services, Sales of Certain Products, Certain Services Everyone requires licenses and permits. There is actually a good aspect of licensing, as they provide some uniformity and standards for companies. But the bad aspect of licensing is that they cost money, and they can be exclusive. A building license can not be paid with money, it must be deserved. A license license has restrictions on who can take it over a criminal record can destroy that possibility. So while some licenses represent a dollar amount, such as a franchise fee, others are more specific and limit who can acquire it, and therefore limits who can acquire the company that utilizes it.
Cooperative landlords. This is one of the reasons that should not be a reason, but it is. Grumpy landlords who do not want to help. The variations are unlimited but it is sufficient to say that if a landlord does not make any adjustments for a new tenant to take over a lease or start a new one, it can make the agreement to go south very quickly. And nothing can be done about it.