Why Most of the Businesses Never Sell

According to the International Business Brokers Association (IBBA), over 80% of businesses never sell. Selling a business can be difficult for several reasons, including:

1. Emotional attachment: Many business owners have poured their heart and soul into building their businesses, which can create an emotional attachment. This can make it difficult to let go and sell the business, even if it is the best decision for their personal and financial future.

2. Valuation challenges: Valuing a business can be complex, especially for small businesses without publicly traded stock or comparable businesses. This can make determining a fair price for the business difficult and may lead to negotiations and disagreements between the buyer and seller.

3. Legal and financial complexities: Selling a business involves a variety of legal and financial complexities, such as tax implications, contracts, and employee agreements. These can be time-consuming and require the expertise of lawyers, accountants, and other professionals.

4. Disruption to operations: Selling a business can be disruptive to daily operations, especially if employees, customers, and suppliers are not aware of the pending sale. This can create uncertainty and instability, which can impact the value of the business.

5. Selecting the Wrong Broker: While brokers are supposed to use their experience and skills to help you, many brokers are ineffective. They do not develop correct strategies to value your business, market it, and bring qualified buyers. After signing the contract with a seller, many brokers transition to find other sellers because they know only a small portion of businesses will ever sell. The best strategy for them is to sign up as many sellers as they can sign up as brokers hoping some of them will convert to a sale rather than focusing on selling the businesses they already signed up.

6. Finding the right buyer: Finding a buyer willing to pay a fair price and who is a good fit for the business can be challenging. The seller or brokers may need to market the business to potential buyers, conduct interviews, and negotiate the terms of the sale. This process can last a few years if the seller is unprepared or the broker is passively managing the sales process. If you want to sell your business to us, we can purchase a business in 90 days or less.

Selling a childcare center, daycare, or preschool business can be complex and challenging, requiring careful planning, preparation, and execution.

We are focused on acquiring childcare centers and preschools in the US and have been through the acquisition process as a seller and buyer. If you want to learn about the process, you can contact us we would be happy to schedule a time to share our experience with you and help you to get ready to sell your business. We are not acting as a consultant and do not ask for financial incentives. We love to share what we know with fellow owners. If you want to discuss how to prepare your center, you can contact us by clicking the link below.