- Only 20% to 30% of small businesses listed for sale actually sell, creating disappointing outcomes for many owners.
- The primary reason for this low success rate is a lack of proper planning and preparation before going to market.
- Thorough planning can significantly boost sale chances, potentially raising them to nearly 100% for a child care business.
- Key preparations include organizing financials, improving operations, updating facilities, and developing a competent management team to inspire buyer confidence.
- Working with professional consultants and Exit Planning experts is crucial for positioning a business for a successful transition.
When it comes to selling a small business, the odds are often stacked against owners hoping for a successful transaction. Statistics show that only 20% to 30% of businesses (including all types of small businesses) that are offered for sale actually sell, leaving many owners disappointed and wondering where things went wrong. The primary reasons for this low success rate is the lack of proper planning and preparation of the business before listing it on the market.
Failure to plan can result in undervaluing the business, missing key documentation, and overlooking essential upgrades that make the business attractive to buyers. Prospective buyers want assurance that the business is well-managed, financially sound, and has growth potential.
However, with thorough planning, business owners can significantly boost their chances of completing a successful sale. This means organizing financial records, improving operational efficiencies, updating facilities, and developing a competent management team. By proactively addressing these areas, sellers can often raise their chances of selling their child care business to nearly 100%. Preparation not only streamlines the transaction process but also inspires buyer confidence and increases the perceived value of the business.
In selling child care businesses for 30 years, I have observed that planning and preparing the business for sale well in advance has a substantial impact on its value and the ability to successfully market and sell it. We encourage all child care business owners to work with professional child care business consultants and child care business Exit Planning experts to plan and position their businesses for a successful transition.
I’m Donna Dailey. I have been helping child care business owners plan their Exit and successfully sell their businesses since 1995. Reach out to discuss your goals and how I may assist you. Conversations are confidential and no obligations. 336-617-3181
