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Almost every business owner comes to "The Decision" regarding selling or recapitalizing your business. For most business owners, especially Micro Market business owners, this could be the most significant decision of your professional life.
But ... for most business owners, selling your business is unfamiliar territory. Many questions come to mind.
- Is this the right time to sell my business?
- How will I find the right buyer?
- How will I prevent my employees, vendors, customers and competitors from knowing my business is for sale?
- Should I be concerned that the WRONG buyer will remove my employees?
- I've never sold a business before. How will I learn about this process?
- How long will it take to sell my business?
Compounding the difficulty of "The Decision" is that industry surveys show that only one in four businesses offered for sale will ever complete a sale. Facts show there are significant hurdles for sellers to find the right buyer, set the right price and structure the right deal.
Among the reasons cited for the 25% closing rate are:
- Business can't support the asking price
- Buyer can't secure financing necessary
- Lack of buyer/seller chemistry
- Legal and/or environmental problems
- Failure of professional advisors to coordinate
- Weak market conditions
For the majority of shareholders of Micro Market businesses, the manner in which "The Decision" to sell or recapitalize your business is handled might significantly impact the remainder of your professional career and your personal life.