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What are the 3-5 main reasons for not being able to sell a business?

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Answers (3)
Michael Givner
Transworld Business Advisors
Morris County, NJ
Premium Broker

Lack of transparency on the part of the owner. Every business, no matter how large or small, has its faults and difficult issues. It's imperative to be open and not try to hide these things. By being transparent, it gives the owner more credibility and helps justify his asking price as being reasonable and objective.

Another reason is fear. Sellers that near the finish line get spooked at the near reality of parting with their "baby".

Difficulty in transferring the business to new ownership. When the owner IS the business and it can't function without him/her, it makes it extremely difficult to sell. In part because the business will command a lower multiple to justify the risk the buyer will assume...this naturally is way too low for the seller (even though it probably isn't).

The #1 reason is definitely unrealistic price expectations on the part of the owner.

Nov 11, 2015
Sid Fields
Newmark Business Brokers
Montgomery County, MD

Overpriced businesses don't sell. Often an owner needs to sell for one reason or another, but has unrealistic expectations regarding it's value and insist on pricing it too high.

Nov 4, 2015
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The BAF Group LLC
MD

Poor pricing. Poor presentation of the business. Poor positioning of the business. The future of the industry is in question. Location of the business. Lots of other, smaller issues.

Nov 3, 2015

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