‘Everything is worth what a purchaser is willing to pay’
(Publis Syrus (1st Century BC)
Many owners seeking a sale rely on the financial performance of their business almost singularly for ‘Price’. But, businesses are sold in a market. Like all markets, sales turnover and prices achieved are ultimately governed by the relationship between supply and demand.
Business sellers will find there are thousands of business and business opportunities being offered for sale at any one time. It’s exacerbated today by the internet where the market is often global, but their market for business buyers is likely to be local. All are trying to entice interest in and contact from, prospective business buyers. There will be competition. Just how much will depend on:
- What the business is?
- How many other similar businesses are being offered for sale?
- Where it is offered for sale?
- What price is being asked?
- What is the demand from ready, willing, and able business buyers?
- Where are those business buyers?
- What, where and how is it being promoted to those prospective business buyers?
- Can business buyers find it amongst all the other offering available?
It’s the market that determines the ‘Price’. As Publis Syrus said over 2,000 years ago. “Everything is worth what a purchaser is willing to pay”. And it’s what purchasers will pay that is what owners considering exiting their business need to know.