Business Sales - Why Isn't My Business Selling

Tips On Getting Your Business Sold When It's Been On The Market For A Long Time

I need help selling my business! And, so you “sold your business”, but the purchase fell over? These are common statements we hear when sellers of Australian businesses have been on the market a long time.

So, you are a business owner, and you want your business sold yesterday, but despite being on the market for a long time it hasn’t sold.  Where do you go from here?

Unfortunately, a business sitting on the market for a long period of time is common, usually there are some consistent themes or reasons why a sale has not been achieved. 

We recommend having an experienced business broker review your situation.

Marketing Your Business For Sale

I’m a business seller, but I can’t seem to find the right buyer….the answer is marketing!

One of the most frequently asked questions from those selling small businesses has to do with where and how to find buyers in todays market place. A business broker can help.

You need to get the word out there that doesn’t damage your relationships with customers, suppliers, creditors or employees. If you know a specific person or business that’s likely to buy your business, you can proceed with a confidential inquiry. To cast the net wider, here are some suggestions to make sure you are fishing in the right pond.

1. Identify who is the likely buyer for your business
2. Determine how best to reach the identified targets
3. Target your marketing efforts on those looking at finding business seller like you

If you have been in the marketplace for a while, the best thing to do is to ask your business broker to review your current strategy and freshen up your advertising.  By reinvigorating your marketing program, your business will attract new a new pool of buyers which might lead to a sale.

Review Your Business

Secondly, a thorough review of how your business is being presented may uncover issues that are putting buyers off.  A professional, accurate Business Profile or Information Memorandum that presents your business in the best possible light, will help remove any doubt and instil confidence for your buyer.

The following information should be included in the document:

1. Executive Summary
2. Investment Proposal or Rationale
3. Overview of the market in which the business operates
4. Details of the Products and Services offered by the business
5. Revenue Profile
6. Employee Profile & Organisational Chart
7. Customer & Locational Information and Demographics
8. Plant & Equipment Included
9. Real estate - Land & Buildings Included
10. Key Legal Agreements in Place (eg. Lease/franchise/licenses)
11. Financial Statements – 3-5 years historical information (current)

Using A Business Broker

Who do I need by my side to sell my business?

Lastly, a knowledgeable business broker will also review your pricing, the longer you are on the market the more downward pressure there will be on your price. An overinflated selling price, just like an underinflated selling price can damage your business sale. So don’t delay a market review.  

Achieving a sale is not easy, and if you are not set up correctly it can take a long time and be expensive. 

Give your business an Advantage by regularly reinvigorating your marketing program, present up to date and accurate information and regularly reviewing your price.

If you would like advice on how to speed up your sale, please contact one of our professional business brokers today.