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…Has Negotiations Stalemated due to Valuation Concerns, on both ends?"
…And Turn Interested Buyers into Qualified Buyers, Today!"
We've got Solutions!
…Check out our Video, to Discover those Solutions... and Pass Our Contact Information on to Your Potential Buyer.
Let Us Help You, by Doing What We Do... and that is by Simply Making it Happen!!
Have Your Buyer Check Out Our SBA Business Loan Page, HERE! We have HELPED 100s of potential Buyers get financing, who were referred to us, by either the Seller or their Broker.
$1.3 Billion Plus, in Loans, Nationwide, (Bank and Non-Bank - U.S. Only)
The percentage of businesses that successfully sell once they hit the market depends on various factors, including the size, type, and the industry the business operates in. Other factors, such as market conditions, financial health, and buyer demand, also play a role.
Small Businesses (Home & Main Street businesses):
These typically have annual revenues of $1 million or less.
Only around 20% of these businesses successfully sell. Common challenges include poor financial documentation, heavy reliance on the owner, and unrealistic pricing.
Due to their size, they are often seen as riskier investments for potential buyers.
Mid-sized Businesses:
These businesses, with revenues ranging between $1 million and $30 million, fare slightly better, with around 30% selling.
Mid-sized businesses often have more established systems, broader customer bases, and stronger financials, making them more attractive to buyers.
Large Businesses:
With revenues of $30 million or more, large businesses have a higher success rate, with about 33% being sold.
These businesses tend to attract a more experienced buyer pool, including private equity firms or strategic buyers, which increases their chances of sale.
However, the complexity of the sale process and market timing can still be a challenge.
On average, between 30% and 40% of all businesses listed for sale end up being sold.
However, this number can fluctuate based on external market conditions such as interest rates, economic health, and industry trends.
Key Factors for Success: Properly pricing the business based on current market value, preparing organized financial records, ensuring the business isn’t overly dependent on the owner, and marketing to the right audience are essential steps that can significantly improve the likelihood of a successful sale.
Businesses that invest in professional assistance, such as hiring brokers or advisors, tend to see better outcomes.
Disorganized Financial Records: Buyers can be put off by messy or incomplete financial records. Having clear, accurate, and thorough financial documentation is essential.
Reliance on the Owner: If the business depends too much on the owner’s skills, relationships, or presence, it may seem risky to buyers who worry about what happens once the owner leaves.
Lack of Growth Potential: Buyers look for businesses that have room for future growth. A business that doesn't show potential for expansion may struggle to sell.
Overpricing: A major issue is often setting the price too high. Owners can become emotionally attached to their business, leading them to expect more than it's worth.
Failure to Address Buyer Concerns: Potential buyers will have questions, and sellers who aren't prepared to address them may lose credibility.
Weak Online Presence: In today's digital world, businesses without a strong online presence may appear outdated or less competitive.
Poor Marketing Strategy: Without effective marketing aimed at the right buyers, the business may not attract enough interest.
Unfavorable Market Conditions: External factors like economic downturns, industry changes, or new regulations can negatively affect a business sale.
Unrealistic Expectations about the Sales Process: Selling a business can be complex and take time. Owners expecting a quick and easy sale may find themselves frustrated.
No Experienced Broker: Selling a business requires expertise. Without a skilled intermediary, sellers may miss important details in the process.
Average to Poor Reputation Grade and Report:
In today's business landscape the reputation and how a business markets and handles it's reputation can make or break a deal.
On the surface, an average to poor reputation will make your business unattractive to a potential buyer.
Want to Sell Your Business Faster?
Want to Avoid Unnecessary Delays with Your Potential Buyer Securing Financing?
At NextLevel Business Solutions, we are more than SBA Loan Specialists---
We are your strategic business partners, dedicated to transforming your vision of selling your business to a qualified buyer, into a reality.
Imagine a partner with over 34+ years of nationwide expertise, equipped with vast resources, ready to tailor financing solutions specifically for your potential buyer--- That's us!
With over $1.3Billion in loans, we have a stellar track record in getting loans closed.
Our knowledge and vast array of nationwide financing resources, bank and non-bank, makes accomplishing our service that much easier.
If you'd like for your potential buyer to get pre-qualified and financed, to purchase your business, don't hesitate to refer your potential buyer to us.
Don't Delay, Contact Us, Today... To Get Your Business Sold, as quickly as possible!!
An "Earn-Out" is a common mechanism in business sales, especially when the buyer is uncertain about the future performance of the business. Especially, if the buyer feels that the success of the business is strongly predicated on the talents of you, the business owner.
An "Earn-Out" allows the buyer to pay a portion of the purchase price, such as half, based on the company's performance after the sale.
Typically, a savvy buyer will require you, the seller, to stay on, at the business and have you meet certain metrics, within the business, over a 3-5 year period of time.
More times than not, you the seller, won't be able to accomplish those metrics, in that span of time; which will position the buyer to not have to pay you the balance due. Therefore, getting your business for half the price, even though you contracted to stay on for a few additional years.
See below, in the next section/column, how you can prevent any buyer from requesting an "Earn-Out".
However, sellers often prefer to avoid an earn-out because it delays full payment and introduces uncertainty.
If for some unfortunate reason you don't sell your business, here's an option you can embrace to transform and Fortify Your Business; to the point, where you may feel fortunate that your business didn't sell, and for a few good reasons.
Our 7-Steps to Market Dominance™ System is a Game Changer for any Business, whether Small, Medium, and Large.
Our System Comprises 7 components of NextLevel Business Solutions Services that will literally position you to dominate your market, with less time and effort on your part.
1). Business Assessment: It all starts with completing our Business Assessment Form.
2). Reputation Report: Let's see what your grade is and fix it.
3). T-MAPS™: Let's start by creating your primary Transformative-Massive Action Performance Strategy and System.
4). Elevate360 ProSuite BOSS™: Let's get you set-up and onboarded with our Preeminent Business Operating Software System
5). Traffic Marketing: Website Retargeting, Hyper-Local, Demographic, and Time-Lapse Cold Traffic Marketing Campaigns.
6). Social Media Marketing: Including Content, Review, and Promotional (Offers) Marketing.
7). Buyer-Precision Pro™: Our comprehensive precise "real-time" target marketing data system that trumps using Google Ads.
These 7-Steps are designed to not only Elevate your Business Growth, Revenue, and Profit, substantially; it's also designed to create either a "4-Hour Work Week", `a la Tim Ferris, or "12 Week Year", `a la Brian P. Moran & Michael Lennington, along with the 'E-Myth', `a la Michael E. Gerber, for you. Providing more time to relax and spend with family, friends, and vacationing.
It's also designed to make your business more attractive to a future buyer with a much higher valuation. If you wish to put it on the market, again or keep it.
At the moment, you're reading this, we have no idea as to why you are selling your business. Nevertheless, the bottom-line is this... We can help you with the following:
1). If you have a buyer,
we can help you sell your business, by working with, arranging, and providing financing to your potential buyer. So, that you can sell your business, as quickly as possible. Just send them our way, to get it done.
2). If you currently have employees, we highly suggest that you have us arrange an ESOP for you, to help you exit your business and preserve your legacy.
3). If you need for us to supply you with potential buyers, who are actively seeking to purchase a business, like yours, we can help you with that, as well.
4). If you're tired of buyers low balling your asking price, we can help you increase the attractiveness and value of your business, to substantiate its valuation, and your asking price.
5). If you end up in the 75 percentile of all businesses that don't sale, we can offer you our formidable 7-Steps to Market Dominance™ Package. This will substantially elevate the Performance, Revenue, and Profitability of Your business; along with providing you with more time to enjoy life's pleasures.
6). Or you can just do ABSOLUTELY NOTHING: After your business doesn't sell; and remain where you currently are, now, and just accept it.
"Just know that we're here to help!!"
By focusing on transparency, financial stability, and alternative deal structures, a business owner can minimize the likelihood of a buyer requesting an earn-out.
In today's digital landscape, buyers are naturally drawn to online reviews and ratings as key decision-making factors.
When a business accumulates mostly negative feedback on platforms like Google, Yelp, or industry-specific sites, it can create subconscious doubts regarding the business's ability to satisfy customers, maintain reliable products, or deliver consistent services.
A poor reputation grade and score can lower the value of your business.
These concerns can undermine trust and trigger hesitation in potential buyers.
Ronald L. Lohan, INSITE Properties & Investments, LLC.
Here are the top two biggest hurdles you, as a business owner, will typically face when trying to sell your business:
1. Finding Qualified Buyers: Many business owners struggle to find serious, qualified buyers who have both the financial means and genuine interest to purchase their business. Even when potential buyers truly show interest, they may lack the necessary financing or experience, leading to delays or failed negotiations. This problem is often compounded by the owner's inability to effectively market the business to the right audience or properly vet potential buyers.
2. Valuation and Negotiation Challenges: Determining the accurate value of the business and reaching an agreeable price with buyers is another major hurdle. Owners often have an emotional attachment to their business, which can lead to unrealistic expectations regarding its worth. Buyers, on the other hand, may see risks or future uncertainties that reduce the perceived value. This gap can result in prolonged negotiations, decreased offers, or even deals falling through, making the selling process frustrating and time-consuming.
Lack of Qualified Leads:
Financing Issues:
Time-Consuming Process:
Targeted Marketing and Outreach:
Pre-Qualify Buyers:
Partner with Financing Experts:
Emotional Attachment and Overvaluation:
Discrepancy in Valuation Methods:
Due Diligence Complications:
Obtain a Professional Valuation:
Prepare Thorough Financial Documentation:
Flexibility in Negotiation:
Highlight Growth Potential:
By addressing these two major hurdles—finding qualified buyers and managing valuation/negotiation expectations—business owners can significantly increase their chances of a successful sale. Leveraging the right strategies and partners, via NextLevel, can turn a complex process into a more streamlined, rewarding experience.
CONTACT US and let's discuss how NextLevel Business Solutions can help remedy these two major hurdles.
James Fagbodun, Owner Wildflower Inn & Rainbow Manor ALF
~ Pablo Picasso
Visit our SBA Business Loan Page, to gather more information about ESOPs, at the tail end of our list of Businesses, in which we have dedicated financing specialists.
If you'd like to use the proceeds, from the sale of your business, to invest in CRE (Income Producing Properties); via our sister company, we can:
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With NextLevel's Comprehensive Transformative-Massive Action Performance System (T-M.A.P.S.™). Which Comprise of Ai Technology, Services, Solutions & Systems, it has everything you need, for your business; including our Elevate360 ProSuite BOSS™ (Business Operating Software System), Consumer Financing, Traffic Marketing Campaigns, Re-Targeting Campaigns, Reputation Marketing & Management, SEO, Citations, Video Creation, Social Media Campaigns, and much More., All Assessable, by Taking Action, to Get Your Money Ball Rolling, Today!