business-sale-still-unsold

Is Your Business for Sale … Still Unsold?

It has been well documented that only a low number of small businesses listed actually sell. While there

It has been well documented that only a low number of small businesses listed actually sell. While there is a myriad of reasons why overpriced businesses are quite common thus accounting for a high percentage of them going unsold. Anyone who studies markets knows that markets can swing. Sometimes the markets are bullish, and prices can be pushed to a premium and sometimes the markets can be bearish, and prices are discounted.

It is very important for sellers to set realistic price expectations when selling their business. For example, let us take a real estate transaction. If all homes in your neighborhood with the same square footage, bedrooms, and amenities sold for $300,000; it would not be prudent to list yours for $600,000 and expect a lot of buyers.

The same is true for business transfers. Buyers are becoming more astute and will benchmark your company against other similar listings. If you are charging too much of a premium, buyers will seek other opportunities.

Markets often change quickly, and as a seller, you do not want to run the risk of missing a bull market just to squeeze an extra dollar or two from the buyer, especially if the underlying fundamentals of the company do not merit the increase in value. The TVG Valuation Services can get a business over this hurdle. Business owners are also able to take advantage of the AOBT event discussions, which are geared toward attendee requested topics.

Here is an article that further explains the importance of setting a realistic price when selling a business.

 

Pin It

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.