When Selling Your Business Doesn't Go as Planned: Exploring Next Steps

Selling a business can be a complex and challenging process, and sometimes, despite your best efforts, your business may not attract the interest or offers you were hoping for. Whether you're in a bustling market like New York or elsewhere, facing this situation can be disheartening. Here's what to consider if your business won't sell:

1. Reevaluate Price and Terms:

• Price Realism: Take a critical look at the price and terms you've set for the sale. Are they realistic in the current market conditions? If not, consider adjusting them to align with market expectations.

• Market Research: Research similar businesses in your industry and location to gain insights into their selling prices and terms. This can help you gauge whether your asking price is competitive.

2. Understand Market Dynamics:

• Market Trends: Markets and industries are dynamic, and what was attractive to buyers yesterday may not be so today. Stay informed about current market trends and adjust your offering accordingly.

• Industry Changes: Changes in your industry, such as shifts in consumer preferences or technological advancements, can impact the attractiveness of your business. Adapt to these changes or consider repositioning your business.

3. Seek Feedback from Your Broker:

• Consult Your Broker: Your business broker is your ally in this process. Engage in open dialogue with them about why your business has not sold. They can provide valuable insights and recommendations based on their experience.

• Market Insights: Brokers have their finger on the pulse of the market. They can share feedback from potential buyers and help you make informed decisions.

4. Explore Alternative Exit Strategies:

• Asset Liquidation: If selling the business as a whole is not viable, consider liquidating the assets. Your broker can recommend professionals who specialize in asset liquidation.

• Partial Sale: Explore the possibility of selling specific assets or divisions of your business rather than the entire entity. This approach can be attractive to buyers interested in particular aspects of your business.

5. Assess Business Performance:

• Business Viability: Assess the current health and viability of your business. Are there underlying issues affecting its appeal to buyers? Addressing and rectifying these issues can make your business more attractive.

• Financial Records: Ensure that your financial records are accurate and transparent. Buyers often scrutinize financials, so having clean records is essential.

6. Patience and Persistence:

• Timing Matters: Sometimes, it's a matter of timing. The right buyer may come along when you least expect it. Patience can be a virtue in the business sale process.

• Reevaluate Periodically: Periodically reassess your business's readiness for sale and its market position. Make adjustments as necessary based on changing circumstances.

7. Seek Professional Guidance:

• Legal and Financial Advisors: Consult with legal and financial advisors to explore your options. They can provide guidance on restructuring, negotiations, or other strategies to facilitate a sale.

Remember that every business sale is unique, and challenges can arise at any stage of the process. By staying adaptable, seeking expert advice, and exploring alternative exit strategies, you can increase your chances of achieving a successful sale, even if the path is different from your initial expectations. Sam Curcio, as your experienced business broker, can guide you through these challenges and help you navigate the complexities of selling your business.