10 Reasons Businesses (sometimes) Don't Sell

1 Price Expectations;

Vendors with unrealistic price expectations seriously impede their ability to sell. Concentrate first on preparation to help maximise the value of a business. Then get in front of the right buyers. Then listen with an open mind to all offers and start to gauge the 'market value' of your business.

2 Lack of Seller Flexibility;

Cashflow lends are very rare so if you're lucky you'll find a cash rich buyer but if not you may have to be flexible and creative with how to bridge price and/or funding gaps. Do not hold on tightly to cash out deals - they rarely happen. Understand that deferred payments and earn outs are highly likely routes to achieving a deal.

3 Skeletons in the Cupboard;

Preparation is key so get your ducks in a row before taking your business to the market and make sure you've addressed and removed any skeletons in the cupboard. Get rid of any outstanding litigation, resolve any employee disputes and provide buyers with a clean, easy to understand sale proposition.

4 Stakeholder Conflict;

I've seen deals fracture due to the late emergence of a discontented key stakeholder. Vendors need to make sure everyone is on board at the beginning of the process.

5 Vulnerability of Earnings;

A key problem with selling small businesses is the vulnerability of earnings. Buyers measure risk and if the revenue is inconsistent, owner dependent, non-contractual or highly vulnerable to competition or micro factors then the risk factors escalate. You may not be able to do much about it but be aware that buying a small business can be risky for a buyer and you may need to share some of the risk.

6 Lack of Process Momentum;

Time kills deals. The greater the drift the more chance a deal will fracture. Keep on top of all advisors to ensure they are all driving forward in the same direction and keep the pressure on prevaricating buyers. Lots of people like to talk about buying and investing but many fail to deliver.

7 Owner Dependency;

The value of a business increases as the vendor shifts a greater % of goodwill from personal to business. Smaller businesses are often too owner dependent so you need to train up the management, systemise processes and give yourself the luxury of a long holiday to prove the business is sustainable without you.

8 Quality of Financial Information;

Vendors should always think about selling close to or soon after year end so that financial information is contemporary and relevant for a buyer. Too many businesses (& advisors) go to market with poor quality financial information which only adds to a buyers uncertainty. Make sure your accounts are up to date and available.

9 Wrong Advisors;

Choosing the wrong advisor can have a very negative impact on the entire sale process and the vendors value. Receiving honest advice at the beginning will make a huge difference to what can be achieved at the end and beware - there are a lot of cowboys about in the business sales market.

10 Chemistry;

Deals are all about people and sometimes the buyer and seller just don’t get on. Try to see through the emotional side of a negotiation and focus on that exit.

No Excuses - Do Your Research

As the internet simplifies our access to information we move towards a future of super editors and niche experts. From the comfort of our keyboard we rapidly drill down into specialist areas and utilise a range of tools - forums, peer reviews, comparison sites - to gain a greater understanding of what we’re being told and what might be relevant to our needs. This rapidity to information is a liberating experience and breaks down traditional barriers, even if some information is less than accurate.


Quentin Letts recent complaint about wikipedia - "you can't trust what they say" - is particularly ironic as he writes for that bastion of prejudice and misinformation, the Daily Mail, however accessibility presents a huge challenge to the traditional information gatekeepers, particularly those who thrive and manipulate information barriers. One sector close to my heart where a lack of transparency, allied to an asymmetrical relationship between seller and buyer, thrives is with the agents and advisors offering to "help" sell small businesses.


Asymmetrical information is where one party has more or better information than the other, which can then be used to disadvantage one party. Add this imbalance to the fact that business sales agents work in an unregulated marketplace and you have a value destroying cocktail where the unscrupulous can manipulate the imbalance and create need for their particular offer which might not, and often was not, in the client’s best interests.


The internet provides us with an outlet to investigate and discover some truths behind the spin and remove elements of caveat emptor (“buyer beware”). It has created a transparency that helps flush out the charlatan from the expert and enables the consumer to form a more educated view about the best option. It’s a particularly important tool when business owners consider who they should use to help sell their business. For many it’s a once in a lifetime experience and signing up to exclusive contracts with the wrong advisor can destroy value, just at the time when a seller is most prepared to sell.


When selecting an advisor to sell your business spend some time in advance reviewing peer forums, googling the name of your suitor and understanding how the market perceives their message. Selecting an advisor to sell your business is potentially the final business critical decision you have to make so utilise the magic of the internet to do your research. There is no excuse.