Empire’s Top 10 Reasons Businesses Do Not Sell
A little secret about the M&A and Business Broker business. Â It is estimated a minimum of 25% and a maximum of 75% of all businesses which go to market NEVER sell. Â Whatever the real figure is, why do some businesses not sell. Â From Empire’s 11 years in the industry, our experience leads us to believe these are the Top Ten Reasons;
1. Â The owners expectation for the value of their business is much greater than a real world valuation.
2. Â The owner is the main person in the business with little or no management team to support the business if something happens to the owner.
3. Â The business has a high concentration of revenues in 1-2 two customers.
4. Â Several family members are part of the business.
5. Â The business is in a space (industry) which is changing
6. Â Revenues are declining and the owner claims it is because he is slowing down.
7. Â Owner takes many perks from the business which are not really “add backs”.
8. Â Owners are unfamiliar with the selling process and are not prepared for the due diligence.
9.  The owner has taken the steps necessary to plan for  an exit strategy.
10. Â Owner did not realize the value or consult with a trusted M&A advisor or Business Broker prior wanting to sell.