What Percent Of Businesses For Sale Will Actually Sell?
Posted by Jeffrey Abbott
While we don't want to go too far out on a limb and start speculating, it is generally accepted that on average about 20% of all businesses are for sale at any given time. That does not mean, by any means, that all businesses for sale will actually sell. This number is based on ALL businesses, of all types and sizes. The number of small to mid-sized, privately owned businesses for sale in the United States (the type of business you are most likely considering selling if you are reading this page) is estimated to be approximately 1 million at any given time.
The percentage of businesses that actually sell, as a percentage of businesses for sale, seems to be a function of the size of the business itself, with a higher sales percentage for businesses the larger they get. Here are some round numbers from The Complete Guide To Business Brokerage By Tom West that illustrate the point:
- 1 in 5 small businesses sell
- 1 in 4 small to mid size businesses sell
- 1 in 3.5 mid-size companies sell
- 1 in 3 large companies sell
Conclusion: if you are reading this page, then you are likely in the small to mid-size business category, meaning that your business has about a 20-25% chance of selling. Are there things that you can do to increase the likelihood that your business for sale ends up in the winner's circle? You bet.
Have a look at the Sellers Section of our website, and download the questionnaires contained there. Be honest with yourself as you answer the questions they contain. If you have done your homework before placing your business for sale, and are realistic in your willingness to accept a market-based determination of its value, there is no reason why your business should sit on the shelf too long getting stale.
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