SELL-EBRATE! Successfully Exit Your Business

Do most businesses even sell?

Gary Morris

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Do most businesses actually sell? The answer to that is nuanced. It's yes and no. It depends on what you mean. So, yes to the right brokers, the majority of their listings should sell. I can qualify the listings. I'm very picky with the listings that I take to the market. So we we don't have a flawless record, but there's a reason for that. So the majority of businesses that we're gonna sell, I'm gonna I'm gonna get a lead that comes in, somebody's interested in selling, I'm going to review the data, and all of the red flags are kind of weighed through there. And if I see that it's not the right fit, I'll direct somebody to either a different broker or some online resources for them to list that website. And I'm not, I just don't want to waste their time if I don't see any concrete data and transferable business worth here. Um so the majority of the businesses that I'm going to list are going to sell simply because I'm choosy and there's clear value in those. And I think most brokers are like that, although there's no concrete data. So, do most of the businesses I sell end up selling? The answer to that is yes, but there is a nuanced component of that. I do occasionally list, and when I say list, very rarely do the listings that I sell go public. They're typically happening behind closed doors, and the public doesn't have access to that information. But occasionally I will have a friend or even maybe a family member who has something that you know I can see it doesn't have real transferable value, but you never know. So I will agree to take those on as a listings. Again, you don't pay anything to a broker unless the business sells, and I will send it out to our list or strategic potential buyers, and those are the ones that typically I don't we don't get bites on. But I know that going in and they get all those disclaimers. Now, the other side of that is a majority of business owners that haven't got proper valuations done on their business end up taking their business to BizBySell, which is like the MLS of real estate, and they list their businesses online. BizBy Cell, their data, I I know it's it's public somewhere, but it's it's between 60 and 80 percent of the businesses listed on that website don't sell. Now, again, there's there's some reasons for that. People will sell franchises and um work from home, you know, accounting businesses, things that owners are just trying to list, seeing if they can get any tire kickers. It could be, you know, an automotive shop that has very little value, it's barely breaking even, it may even be losing money, but the owner is just trying to see if he can get a bite. So the data shows that businesses that list on bizbyell.com don't sell, but the ones that have value, if we can look at some of that data, I'm sure end up getting, you know, getting the right buyers involved. So if you are an owner and you're gonna try to list on your own, the the unfortunate reality is again going to like bizby sell.com, the majority of them are not gonna sell, and you want to make sure that if you do go that route, that you at least get a valuation from a professional broker who can give you the right price to take it to the market. Now, there are things that you need to know when you're going to do that, you need to get NDAs from all your potential buyers. You you know, you need to try to do some qualifications to your potential buyers to make sure that they can even afford it. How are they getting financed? There's all these components that make what I do as a professional important that you're gonna have to try to figure out. You can, I guess, go to ChatGPT or Google or YouTube and try to figure out some of those components. And you know, if it the reality is if you hire a broker, you don't you don't pay, it comes out of the asking price, so you're not paying them up front, you're paying them at the end. And it it's it's a lot easier to go that route. But enough with the you know, the plug for vantage brokers and hiring me as your broker. Most businesses that get put online don't sell. Most businesses that go to brokers, if they're good at what they do, they're gonna qualify it. If they're good at utilizing their time allocation, they're going to qualify it, and they're only going to take things that they think can sell to the market. So, yes and no, yes, they sell the majority do not sell from a public perspective, but a majority when they're working privately with brokers end up do selling, in my experience. So I hope that helps, and we will chat again soon.