How Did Price Your Business And Why Didn’t It Sell?

Last week I spoke to a business owner selling their business and asked them how they came up with the selling price because the business was well over what a buyer would pay. I wasn’t surprised to hear that there was no clear answer because I see this all the time. This is one reason only 20% of businesses sell that go to market; they are overpriced by the broker or the owner because that is what the owner needs to retire, pay off debt, etc.

As a business owner, it's important to be realistic about the value of your company. Don't fall into the trap of pricing your business based on your personal needs or perception of its worth. This can lead to trouble if your asking price is above what potential buyers are willing to pay.

It's also important to have realistic expectations about the sale timeline. Selling a business can take as long as nine months, even if it's priced correctly, due to factors like financing, licenses, and environmental concerns

To avoid frustration and false hope, meet with a Certified Business Intermediary for an unbiased evaluation of your company's worth. If the valuation isn't enough for you to exit, consider making changes to increase the value before selling. And if you're ready to retire now, be realistic about what your business will sell for and what a buyer will pay for it.

Don't let unrealistic expectations sabotage the ?your sale of your business. Contact a Certified Business Intermediary like Mike Limbers at [email protected] for an honest opinion/valuation on your company's value.