Lisa Riley

The average time to sell a small business stayed relatively consistent in Q4 2022, varying from six to 10 months. Of that time roughly 90 days are spent in due diligence, after a signed letter of intent or offer.

Despite the solid performance evidenced in the business values above, advisors are reporting a significant drop in seller market sentiment. (A seller’s market occurs when demand exceeds supply. In a seller’s market, buyers compete in order to win deals. This typically translates to increased values and more favorable deal terms… Read More »Seller’s Market Sentiment Q4 2013-2022

As shown in the market pulse report Q4 2022. Data shows that of the deals that successfully closed, nearly half (47%) had at least one other offer on the table and 40% had at least two other offers. Notably, the lower middle market businesses were more likely to garner multiple… Read More »Closed Deals With Mutiple Offers

Data shows that of the deals that successfully closed, nearly half (47%) had at least one other offer on the table and 40% had at least two other offers. Notably, the lower middle market businesses were more likely to garner multiple offers than smaller Main Street operations.

Deals can fall apart for any number of reasons, and market conditions change rapidly. Maybe projections looked good when the buyer and seller started negotiations, but now the numbers look different. Also, it’s not that uncommon for small business owners to accidentally misstate or misunderstand their financials. That’s a big… Read More »Number One Reason Deals Didn’t Close, By Deal Size

Advisors gave a number of reasons that deals failed to close. Overall, 23% of advisors cited ‘unrealistic seller value expectation’ as the top reason deals fall apart. Economic uncertainty and poor financials were other leading factors. Notably, while ‘unrealistic seller expectations’ was the leading issue overall, it wasn’t always the… Read More »Leading Reasons Deals Don’t Close, Over All Deals

Working With Experienced Advisor Can Double Chance of Selling Estimates from the M&A Source and IBBA Market Pulse Report suggest that of those businesses put up for sale on the M&A market, only half will successfully sell – and that’s assuming they have an accredited advisor at the helm.The industry… Read More »Terminated Client Engagements With Multiple Buyer Offers