Sellers are in the Drivers Seat

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DriverSeatWe at Apex are very familiar with the tension between securing the highest price for a business, and not getting it sold. 2013 Survey results* indicate that one in three businesses will not sell within a year of listing.  Further, business brokers indicate that 40% of the time these businesses do not sell because sellers:

  • assign unreasonable valuations
  • make unreasonable non-price demands

What can you do to avoid this trap?

  • Get a market valuation before you intend to sell; it will help to set realistic expectations and suggest a roadmap on how to reach your financial goal.
  • Examine how your business performs relative to industry benchmarks so you can boast your excellent results, or work to improve them.

Oftentimes seller’s expectations are not far from the marketplace reality—except for some critical variables.  Let one of our Apex Advisors help you to navigate through the details of a selling strategy. The investment that you make today to plan your exit is likely to pay off when the time comes with a timely sale at an optimal price.

*A more complete discussion of the Pepperdine University research findings have been published by Forbes.

Paul Temme
Senior Advisor

Easy Way to do a Deal

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Easy WayEasy is relative, but once in a while we are involved in deals that are refreshing. In a case this week, we closed on a transaction that worked out very well for both sides. What started out as a typical purchase with delays and a long list of to-do’s ended smoothly because of great communication between buyer and seller.

The buyer and seller talked about their needs, worries, goals, and worked out the details together! Each was open and honest with each other. Both sides were willing to give a little. Both had a goal to get a deal done and were willing to put in the effort.

There were delays with licensing, banking, landlord, and legal efforts but no one was to blame. Sometimes there will be feelings of frustration, but it’s ok. The idea is to work through the hurdles one at a time and keep the other side advised of the progress.

Talk to an Apex Business Advisor for assistance when buying or selling a business.

Doug Hubler
President