sell your business

Factors That Inhibit the Sale of Your Business

The following is an obvious statement: the world is not perfect. You are going to experience hurdles and roadblocks on your life’s journey. This existential fact is present in all aspects of living. Selling your business is unfortunately not immune to this fact. In today’s post, we will cover several factors that can prevent you from selling your business.

Buyers, like sellers, enter the process with a variety of preconceived notions about how the process should work, as well as what they consider to be “a great deal.” The psychological factors involved in selling a business shouldn’t be overlooked. Sellers need to understand the specific wants and desires of the buyer as well as their own psychology. Even serious buyers may have highly unrealistic expectations regarding various aspects of a business, ranging from its price to its opportunities for future growth. In some cases, they may stall due to the fact they are not quite ready to buy a business and see no urgency in the matter. Buyers can also be influenced by outside parties, whether advisors or friends and family. In short, sellers may discover that, for all practical purposes, buyers may actually be several people who are forming a collective opinion on issues regarding the business.

A seller’s own psychology can play a huge role in whether or not a business is successfully sold. Many sellers enter into the process without a full understanding of what is involved. This factor, of course, underscores the tremendous importance of working with professionals months, if not years, before you actually place your business on the market. These professionals should include an M&A Advisor or Business Broker.

Another major obstacle is that many sellers have unrealistic expectations about both price and the time frame in which their business can be sold. Sellers should enter the selling process with their eyes open and realistic expectations in place. Be sure to establish a fair price. It’s also important to understand that it may take a year or longer before a buyer is found.

If you are looking to take advantage of the current market conditions to sell your business, contact Broker Matcher today!

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