Why do 87% of businesses fail to sell

The main reasons your business does not sell and how to fix it.

BUSINESS VALUESELLING YOUR BUSINESS

Ron Maycock

5/7/20252 min read

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You may not agree with what I am about to say, even worse you may think it applies to others but not yourself, however more worrying, you may agree and still choose to do nothing about it!!

The NUMBER 1 reason businesses do not sell, is because the perceived value the owner assigns to their business, does not match with the perceived value a purchaser puts on your business. This can stem from a number of sources such as an accountants valuation, a brokers valuation (especially if their fee is a % of the final figure), using a "out of thin air" multiple to calculate the value or even the belief that because it has generated you a salary for a number of year, it is worth the same or something to someone else - Harsh reality, those buying businesses have no desire to buy themselves a job!

The NUMBER 2 reason is that there are more attractive businesses out there for people to buy and hence you are not 1st choice. This again can be for a number of reason not limited to: You have built a "practice" not a business (i.e. you are integral to the business), the working capital requirement is too high to run your business (buyers do not want to have to put in a high % of OPEX for a small return OR your business lacks enduring competitive edge (too many others are doing what you are doing0 or the buyer could easily replicate what you do and hence do not need to buy you)

BUT IT DOESN'T HAVE TO BE THIS WAY!!

The Value Builder system works best with businesses owners c2 - 5 years away from exit. That way there is time to work on the key areas that are affecting your value and saleability. We proactively identify and then work with you to improve 8 Key pillars within the business, 4 pillars driving your decision to sell and even how much you need to realise to achieve financial freedom. These range from Financial performance; dependence on you; future opportunities; your ability to generate cash (rather than spend it or tie it up) and even the type of exit you want to achieve. Even better, not only does the value, and the value multiple go up, your business is proven to attract more buyers even at the higher price.

So the question is of the 2 types of business owner looking to sell in the next 5 years, Are you the one who will do nothing hoping that you are, by some kind of minor miracle, in the 13% of businesses that will sell OR are you one of the ones that get proactive and take decisive action - thus ensuring you are in the 13% that sell. If the latter, either complete the form below and we will contact you and/or complete your FREE Value Builder Assessment via the follow link