Why Many Businesses Don’t Sell and What Owners Should Know before Taking the Leap

Why Many Businesses Don’t Sell and What Owners Should Know before Taking the Leap

B2B CFO launches nationwide program to educate business owners on key issues involved in selling their companies MESA, Ariz. (2/21/2018) –   It’s not the lack of money, nor the lack of interested buyers that stands in the way of many owners looking to sell their businesses.  According to B2B CFO, the nation’s largest business transition firm, the main reason why most business owners are not successful in transferring ownership is because their companies are not ready to undergo the sale process. “Most business owners have never been given the proper information needed to sell their business,” says Jerry L. Mills, CEO and founder of B2B CFO. In the United States there are 20 million of privately-held companies. Of those, about 5 million have five or more employees, and only 150,000 of those have sales between 9 million and 100 million USD.  On average, since 2009, only 9,294 of these companies are sold each year.  This statistic immediately begs the question of why only such small percentage of businesses successfully transfer ownership. Michael Nall, Founder of the AM&AA (Alliance of Merger & Acquisition Advisors) notes that according to their findings, the institutional investors and private equity groups are just as frustrated.  “There is an unprecedented amount of equity capital currently available on the buy-side,” said Nall.  “Private equity groups, institutional investors and corporate buyers want to add to their portfolios and have ample resources to do so.  The problem is that many privately held businesses lack a business model and a management team that can run the company without the owner and often do not have the systems and processes...