Facts and Figures regarding Buying or Selling A Business

• 2005 through 2015 has seen a dramatic increase in the number of strategically motivated buyers versus purely financial buyers.
• About 8% of all small businesses are franchises (and this number is growing).
• 80% of all small business sales involve the seller providing some form of financing for the buyer. Typically 50-75% of the purchase price.
• Business brokers report that 99% of the businesses they list for sale are not properly prepared to be sold. There can be many problems including:• Poor financial statements and/or disorganized legal ownership documentation• Outdated inventory and unprofitable products and/or services • Inefficient employee staffing
• Most potential business buyers don’t buy because of:
  • Lack of understanding of the process which leads to uncertainty
  • Inability to raise enough funds (purchase money, professional fees, operating capital)
  • Fear of the unknown (the ability of the business to sustain past performance)
  • Fear that some key fact may have been misrepresented or omitted