Sellers are shocked to find that 4 out of 5 businesses don’t sell. The biggest reason is that the seller can’t prove the business cash flow. A business is priced based on multiples of cashflow.
The seller must prove the cashflow to a buyer or THE BUSINESS WON’T SELL.
There are only 2 ways to prove the business cashflow:
- First is to get a Business Valuation which is like a Real Estate Appraisal that you got when you bought your home, they start at $2500 up.
- The Best way to prove cashflow is to get your business SBA pre-qualified.
The Small Business Administration (SBA), a US government agency can Pre-Qualify your business by examining your tax returns, which will determine the business’s true value and cash flow. An SBA-pre-qualified business commands the highest selling price and will sell the quickest. If you can prove the business cash flow, the Small Business Administration (SBA) will loan 100% of the asking price to a buyer with only 10% down. It is the easiest and fastest way to sell your business.
Actually, there are 66 Reasons Why Businesses Don’t Sell – review them here.
To ensure your business sells the quickest and at the highest price, I will help you get your business SBA pre-qualified, assuming your financials are clean.
