Completing a successful business sale is a complex process that challenges even the most experienced professionals. Statistically speaking, only 30 to 40% of businesses listed for sale will actually sell. If your business has a revenue of under $10 million, your chances drop even further to 15 to 25%, leaving smaller businesses with an even greater chance of failing to close a deal.
Part of the reason for these statistics is that the entire sale process is fraught with uncertainty. It’s largely based on anecdotal processes and full of inequities and unmet expectations, leaving both parties vulnerable throughout the journey.
Moreover, the scarcity of reliable, practical information often leads to unrealistic expectations about timelines and requirements.
Whether you’re a business owner looking to sell, an entrepreneur aiming to acquire, or a trusted advisor guiding clients through the process, the reality is that many transactions fall through, leaving all parties frustrated after investing significant time and resources.
But regardless of elements that may be out of your control, there are powerful proactive steps you can take to flip that script.
With the right approach, tools, and knowledge, you can significantly improve the chances of a successful business sale. Let’s talk about the common pitfalls that derail business sales and, more importantly, explore strategies to overcome them.
Inaccurate Valuation: The Number One Deal Killer
One of the biggest hurdles in selling a business is setting the right price. Many owners, emotionally attached to their businesses, tend to overvalue their companies.
On the flip side, some might undervalue their business, leaving money on the table. This discrepancy between perceived and actual value can quickly derail a sale.
If you’re a business seller or you’re representing a seller, you need to prepare your business to get it ready to sell, and Mavrek software provides that process.
How Mavrek’s valuation tools can help
A professional valuation provides an objective, market-based assessment of your business’s worth. This unbiased view helps set realistic expectations and provides a solid foundation for negotiations.
Mavrek offers comprehensive valuation tools that take the guesswork out of pricing your business. By inputting your financial data, industry benchmarks, and other relevant information, Mavrek, with the assistance of a valuation expert, can help generate a fair and defensible valuation.
This data-driven approach helps you set the right price and provides potential buyers with the transparency they need to move forward confidently.
Lack of Preparation
Selling a business isn’t just about finding a buyer; it’s about being ready when the right buyer comes along. The sale process is complex, with multiple steps that must be completed to keep the deal on track. A single misstep can cause the entire deal to fall apart, making thorough preparation critical.
What’s often overlooked is that preparation should begin years before the sale. Organizing financial statements, contracts, customer data, and operational details can be overwhelming without the proper tools and guidance.
Mavrek’s business profile feature
Mavrek’s business profile feature streamlines the preparation process. It guides sellers through compiling and organizing all the essential information buyers will want to see, ensuring they’re ready to move quickly when the right opportunity presents itself.
Unqualified Buyers: Avoiding Time Wasters
Anyone who has tried to sell a business can tell you that dealing with unprepared or unqualified buyers can be a significant drain on time and resources. Many potential buyers not only lack the financial resources to complete the purchase, but they also may not fully understand what it takes to run that particular kind of business.
Mitigating risk
Since owners are often emotionally invested in their business, it’s invaluable to have the objective support of trusted advisors such as CPAs, exit planners, real estate professionals, and their business attorneys.
Mavrek also helps mitigate risk by pre-qualifying potential buyers. The platform collects the necessary information from buyers to allow sellers to review and approve or disapprove before buyers get access to sensitive business information, saving you time and protecting your confidentiality.
By addressing these three main pitfalls – inaccurate valuation, lack of preparation, and unqualified buyers – Mavrek significantly increases your chances of a successful sale.
An All-In Software Solution
After understanding the common pitfalls in business sales, it’s crucial to recognize how the right tools and processes can tip the scales in your favor. This is where Mavrek truly shines, offering a distinct advantage in closing deals.
Following a Linear Process
One of Mavrek’s key strengths lies in its structured, linear approach to business sales. This methodical process ensures that both buyers and sellers move through each stage of the transaction in a logical, organized manner.
Mavrek’s linear approach not only keeps all parties aligned but also helps manage the unpredictability of business sales. On a long enough timeline, unexpected issues can and often do arise. By providing a clear roadmap and facilitating open communication, Mavrek helps mitigate these risks and keeps the deal on track even when challenges emerge.
Keeping buyers and sellers aligned
In the often chaotic world of business sales, misalignments between buyers and sellers can quickly derail a deal. Mavrek’s linear process acts as a roadmap, keeping all parties on the same page throughout the entire journey. This alignment is crucial for several reasons:
- Clear expectations: Both parties understand what’s coming next, reducing surprises and potential conflicts.
- Timely progress: With a clear path forward, deals are less likely to stall or get bogged down in unnecessary delays.
- Reduced miscommunication: The step-by-step process minimizes the risk of important details falling through the cracks.
As you go through the process of finding a buyer, you’re going to go through negotiating with that buyer, final due diligence, legal documentation, and transition. Mavrek’s straightforward process ensures each of these crucial steps is addressed in turn without overlooking any critical elements.
Mavrek’s step-by-step approach
Mavrek’s platform guides users through a carefully designed sequence of steps, each building on the last. This approach offers several benefits:
- Comprehensive preparation: The process starts with thorough business preparation, ensuring all necessary information is gathered and organized before engaging with potential buyers.
- Buyer readiness: The platform helps prepare you for interactions with potential buyers, ensuring you’re equipped to present your business effectively and address buyer inquiries.
- Structured negotiations: The platform provides tools and guidance for effective negotiation, helping both parties reach mutually beneficial agreements.
- Streamlined due diligence: Mavrek’s digital tools make it easy to share and review essential documents, speeding up the due diligence process.
- Legal Documentation: Mavrek’s transactional template library provides all the base document templates needed for most transactions.
- Smooth transition: The final steps of the process focus on ensuring a seamless handover, setting the stage for the business’s continued success under new ownership.
Increasing Your Chances of Success with Mavrek
In an arena where the majority of business sales fail to close, Mavrek stands out by addressing the root causes of these failures. By combining technological innovation with industry expertise, Mavrek transforms the business sale process from a daunting challenge into a manageable, step-by-step journey.
The platform focuses on early preparation and objective analysis, helping users avoid common pitfalls and enter the market from a position of strength. With expert-level tools and guidance, Mavrek democratizes the process, giving small business owners and buyers the insights they need to succeed.
Whether you’re selling your business, looking to buy, or advising a client, Mavrek provides the structure and support to navigate the transaction with confidence.
