I have often thought that owners would prefer someone to “Buy” their Business rather than them trying to “Sell” the Business. There is a big difference in the process. Putting the business up for sale is a “Big” decision and often Business owners find barriers to delay or refuse to take the step. These include…
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“The business isn’t worth enough to meet my financial needs”.
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“The employees (or customers) will leave when they discover I’m trying to sell”.
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“I will be required to work years for a new owner.”
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“The sale process will take too long and cost too much, I don’t want to hire an “expensive Investment Banker”
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“Given the tax bite on sale proceeds, it makes more sense to stay, enjoy the cash flow and get paid over time.”
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“What will I do after I sell and leave the business? This business is my life!”
However, waiting for the “Offer I can’t refuse” may be futile...it may never come. And when potential buyers knock on the door…and they do, you may not be ready. Responding to an unsolicited offer has its own drawbacks.
