85% of small businesses fail to sell.
Despite the prevailing ‘silver tsunami’ narrative promising to bring 12 million SMBs to market over the next 10-15 years, the vast majority of small businesses will not find new owners.
Why? Most fail to meet the 3 minimum requirements that make for a ‘sellable’ business:
- Survivability: The business must function without the owner’s daily involvement.
- Transferability: Value must be tied to assets, systems, and contracts that can be passed to a new owner.
- Profitability: Buyers need to have confidence that they can earn a fair return on their investment.
For business owners: the good news is that most of this is within your control. Advance planning and early preparation can have a significant impact on your business’ sellability and value.