Three Biggest Lies in the Business Sales World

I read the following blog posted by Smith Floyd, a Mergers & Acquisitions firm based out of Hawaii. Although his responses to business owners are somewhat harsh, there is often a lot of truth to these responses.  Here is the Smith Floyd blog...

"The world of business sales is a shark-infested ocean.  There is no doubt about this.  From mom/pop stores that sell for $80k to middle-market deals of $10 million+ . . . to buying shares of publicly traded companies.  The sharks take on many different forms.  The most dangerous ones are those that approach with the appearance of a guppy.  The real identity is revealed . . . too late.

Here are some examples that we hear almost everyday:

- “I was offered $400,000 for my business five years ago.”

- “I’ll buy your business.  I don’t have the money but a friend/relative/associate/inmate will invest the money”

- “When you ready to retire, you let me know.  I’ll buy your business!” (from a friend/relative/associate/employee, etc)

Based on first hand observation, I can tell you with virtually NO exceptions, here are my answers, in order:

- No you weren’t.  Some knucklehead and/or tire kicker was speaking out of his butt and as a result planted a number in your head that may or may have any basis.

- The “investor” NEVER comes through.  They will always have a “financial setback”, “liquidity issues” or “a personal / health / family issue to attend to”.

- This person will NEVER buy your business. Worse, the process of trying to sell it to him/her will likely damage your business such that it becomes “unsellable”

Reposted from:  Three Biggest Lies in the Business Sales World — Smith Floyd Mergers & Acquisitions:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.