Get Exitable Blog/10 Reasons you NEED to prepare in order to sell.

10 Reasons you NEED to prepare in order to sell.

Monday, August 14, 2023

10 reasons why you MUST to prepare or
you may not sell your business!


1. Longer Time to Sell

On average, it takes 6 to 12 months to sell a small business successfully. By preparing in advance, business owners can ensure a smoother sales process and avoid delays. (Source: BizBuySell)



2. Increased Market Competition:
The number of businesses listed for sale has been steadily increasing, resulting in a more competitive market. Adequate preparation gives sellers an edge in attracting qualified buyers. (Source: BizBuySell Insight Report)



3. Higher Success Rate:
According to industry data, businesses that are properly prepared and positioned for sale have a higher success rate in finding suitable buyers and completing successful transactions. (Source: International Business Brokers Association)



4. Financial Performance Matters:
Prospective buyers closely scrutinize financial statements. Businesses with strong financial performance and clear records are more attractive and command higher valuations. (Source: Ernst & Young)



5. Valuation Optimization:
By preparing in advance, owners can identify and address factors that may negatively impact their business's value, such as operational inefficiencies or legal concerns. This allows for strategic improvements and ultimately maximizes valuation. (Source: Small Business Administration)



6. Smooth Transition Planning:
Preparing ahead of time enables business owners to develop a succession plan and ensure a smooth transition for employees, customers, and stakeholders. This helps maintain business continuity and buyer confidence. (Source: Exit Planning Institute)



7. Due Diligence Efficiency:
Buyers conduct thorough due diligence before finalizing a purchase. Having organized documentation and readily available information reduces the time and effort required during this phase, increasing buyer confidence. (Source: BizBuySell Insight Report)



8. Risk Mitigation:
By addressing legal, regulatory, and compliance issues in advance, owners can minimize the risk of surprises during the sales process, which can lead to transaction delays or even failed deals. (Source: International Business Brokers Association)



9. Competitive Advantage:
Well-prepared businesses are more attractive to potential buyers, especially in competitive industries. A thorough preparation process highlights the business's unique selling points and differentiates it from competitors. (Source: Exit Planning Institute)



10. Emotional Readiness:
Selling a business can be emotionally challenging for owners who have invested years of hard work and dedication. Preparing in advance allows owners to mentally and emotionally prepare for the transition, increasing the likelihood of a successful sale. (Source: Entrepreneur)



By considering these ten reasons, supported by relevant statistics, business owners can better understand the importance of preparing ahead of time to sell their businesses. Adequate preparation not only increases the chances of a successful sale but also optimizes business value and ensures a smoother transition for all parties involved.

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Hi, I'm Tracy Gunn

Co Founder of Exitable

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