INTERESTING FACTS ON SELLING A BUSINESS

April 24, 2009

Interesting Facts:

1. One out of five businesses change hands each year.

2. Most sellers are selling a business for the first time and do not understand the sales process.

3. Getting financing is significantly more difficult on business transactions than a real estate transactions and almost always require a formal business plan.

4. Sales by business owners often receive far less than market value due to lack of understanding of business valuation techniques.

5. Only a handful of accountants and lawyers fully understand the basics of business valuation, risk analysis, exit strategies, business plans, competitive analysis, trend analysis and cash flow forecasting, yet sellers and buyers still count on them.

6. Over 50% of all deals not completed with professional assistance from a business broker result in transactional problems, dissatisfaction or default.

7. Most buyers have little appreciation for the amount of effort it takes to secure a SBA or conventional loan and are not skilled in completing a formal business plan.

8. Businesses highly favored by the the SBA and banks for loans: Assisted Living Facilities, Expansions, Child Care Centers, Dentists, Doctors, Funeral Homes, Hardware Stores, Medical/Dental/Vet Facilities, Nursing Homes, Pet Centers and Recycling Facilities.

9. Businesses not favored by the SBA and banks and almost always require some form of seller financing: Beauty Salons, Breweries, Dry Cleaners, Fishing Vessels, Poor Performing Franchises, Gas Stations without Convenience Stores, Gift Shops, Gyms, Non-Flagship Hotels/Motels and Restaurants.

10. I am here to help residential and commercial realtors who do not have experience selling a business. Everything you have learned on how to market a property is does not work in selling a business. In fact, it often makes selling a business far more difficult, if not impossible. Call or email me at 800-599-0503 or eric@bluechipbizsolutions.com.