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
February 21, 2018 10:00 AM Eastern Standard Time
MESA, Ariz.–(BUSINESS WIRE)
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 in place to deliver results that buyers are looking for.”
To help owners understand and address these and other potential shortfalls, B2B CFO has launched a national educational program called “The Business Sale Solution.” Following the success of The Exit Strategy Handbook, which has already sold more than 12,000 copies, the new educational program demystifies a business transition and arms business owners with practical information.
The 90-minute seminar covers critical issues that every business owner should know before embarking on the sales process journey. From understanding the types of buyers and their motivation factors, calculating EBITDA and multipliers, handling the due diligence process, creating turn key operations and teams – The Business Sales Solution is designed to educate business owners on what buyers want and how to make it a reality.
In today’s marketplace “exit planning” is a popular buzzword that doesn’t get business owners any closer to potential buyers. Mills urges business owners to get an education before talking to anyone about selling their company.
“Do not write a check!” Mills warns. According to Mills, many business owners end up writing hefty checks only to receive an “appraisal” or an “exit plan” which, without execution, gather dust on shelves.
“Writing a big check does not guarantee a sale and every business owner should educate him or herself before starting down any path in order to understand the best options,” added Mills. “That is why we created this program. Business owners have the right to know this information. Our program is purely educational, practical, and free of charge.”
With nearly 220 Partners across all major markets in the United States, B2B CFO has worked with business owners around the country helping them grow, sell or acquire companies.
B2B CFO held its first round of The Business Sales Solution in 2017 across the country in Phoenix, Chicago, Dallas, Houston, Fort Lauderdale, Seattle, Santa Ana and New York suburbs. More than 300 attendees participated in the program in 2017.
Mills added: “Based on the feedback we received from those in attendance, we know that we have created a much-needed educational resource that helps owners prepare for the sale process.”
B2B CFO will hold The Business Sale Solution seminars across the United States throughout 2018. For a schedule of upcoming seminars, or to request one in your market, please visit https://www.b2bcfo.com/business-sale-solution.html
About B2B CFO
B2B CFO is the largest Business Transition and Chief Financial Officer services firm in the nation. B2B CFO Partners work with owners of privately held companies helping them sell, transfer, acquire or grow their businesses. Each B2B CFO Partner is a senior level executive averaging 25-30 years of experience and works on-site with the business owner. With more than 1,500 completed transactions totaling more than $50 Billion, B2B CFO Partners are uniquely positioned to be the best resource to business owners. B2B CFO is headquartered in Mesa, Arizona, and has a nationwide presence with 220 Partners across major markets in the United States. To find out more visit online at www.b2bcfo.com.