Did you know that only 20 to 30% of businesses listed for sale end up getting sold? Shocking, right?
Whether you’re a soon-to-retire CEO interested in selling your business or a young entrepreneur looking for a merger and acquisition opportunity, brace yourself for a rollercoaster ride! Selling a business might seem daunting, but if you prepare well, nothing can stop you from closing a profitable deal.
When selling your business, it’s essential to prepare beforehand.
Let’s talk about the seven most surprising things you might encounter during a B2B sale.
1. Time Constraint
Initially, all business sellers are incredibly hopeful and confident about their company’s worth, expected ROI, and future outlook until they encounter a crunching time limit.
Selling a business is a detail-oriented task. Several steps such as gathering documents, performing due diligence, planning an exit strategy, and evaluating your business’s worth take up a lot of time.
And as time passes, your prospects and profit margins vary too. It might seem easy at first, but you’ll feel under-pressure once you step into a seller’s shoes.
2. Stiff Market Competition
Another surprise you might encounter is the stiffness of market competition. You probably won’t realize how many companies are listed for sale until you list yours. You might also feel the pressure of complex and ever-evolving customer demands and expectations. But always remember, the customer is the king with a high bargaining power.
3. It’s Never All Cash
If you’re expecting a full cash payment from your business’s acquirer—we suggest you don’t. Business deals can be designed in several ways, and due to high risk, 100% of cash payments aren’t preferred by a majority of B2B buyers.
We recommend seeking professional assistance to develop a perfect deal that benefits you and your customer while maximizing value and minimizing risks.
4. Catching the Sales Amnesia
While you may be an expert at selling your products or services to B2C customers, you’ll be shocked at how quickly your sales savviness vanishes.
Wondering why this might happen?
Selling a business is more difficult than selling a product or a service. You’ll have to put your needs above your desires and try to gain maximum ROI. You’d want to close the best deal and walk out the front door without any risk of post-sale depression or remorse.
5. The Acquirer’s Lack of Knowledge
Your best offer might come from a customer who knows nothing about your company or the industry you work in. For example, you’re selling your restaurant, but the restaurateur who’s interested in buying it is a newbie and has limited knowledge about how the industry works.
In such instances, you need to study and analyze your customer’s past performance, credibility, and ability to grow. After all, you must be equipped to propose buyers some budding growth ideas.
Curious Whether Now is a Good Time to Sell Your Business?
If you’re interested in selling your business or are looking to acquire one in Florida, South Carolina, Georgia, or elsewhere in the US, engage with our expert brokers and advisors at Gulfstream Mergers & Acquisitions.
We are a trustworthy M&A advisory firm with years of experience helping clients looking to sell or buy a business for sale. Our services are focused on maximizing deal value and creating long-term client relationships.
For more information, contact us today!