Why 80% of owners cannot sell their business
Reason 1: Owner's inflated expectations
This is one of the most common reasons for deals falling through: owners overestimate the value of their business and are unwilling to negotiate. The seller may spend months on due diligence and legal consultations, reach the LOI (letter of intent) stage, but the negotiations end in nothing. Financial disagreements also complicate the process: chaos in reporting, inconsistencies in taxes, hidden debts, lack of transparency in documents. Even if the business is profitable, a lack of trust and unreasonable expectations instantly reduce its value or make the sale impossible altogether.
LLC "EIFOS HUB" recommends:
evaluate the business: by revenue, profit, revenue recurrence, market. Order an independent evaluation and be open to negotiations.
This is one of the most common reasons for deals falling through: owners overestimate the value of their business and are unwilling to negotiate. The seller may spend months on due diligence and legal consultations, reach the LOI (letter of intent) stage, but the negotiations end in nothing. Financial disagreements also complicate the process: chaos in reporting, inconsistencies in taxes, hidden debts, lack of transparency in documents. Even if the business is profitable, a lack of trust and unreasonable expectations instantly reduce its value or make the sale impossible altogether.
LLC "EIFOS HUB" recommends:
evaluate the business: by revenue, profit, revenue recurrence, market. Order an independent evaluation and be open to negotiations.
Reason 2. The business is tied to the owner
This is a common problem for small and medium-sized businesses. The owner is the salesperson, negotiator, marketer, and accountant. All processes are tied to them. They personally deal with customer issues, negotiate with contractors, resolve conflicts, and sign invoices.
Relationships with suppliers are often built over years, becoming personal and trusting. Often, only the owner knows where to buy at the best price, how to get a deferral, or what to do if a delivery fails.
As a result, the business operates not as a system, but as an extension of the entrepreneur himself. And if he is absent from the process for a day, everything slows down. From the buyer's point of view, this is not a business, but ‘work tied to a specific person.’ And such assets are difficult to sell and are worth less.
LLC "EIFOS HUB" recommends:
start preparing for the sale at least 1–2 years in advance. Delegate key functions: sales, customer service, purchasing. Write down your business processes, hire a manager or assistant.
This is a common problem for small and medium-sized businesses. The owner is the salesperson, negotiator, marketer, and accountant. All processes are tied to them. They personally deal with customer issues, negotiate with contractors, resolve conflicts, and sign invoices.
Relationships with suppliers are often built over years, becoming personal and trusting. Often, only the owner knows where to buy at the best price, how to get a deferral, or what to do if a delivery fails.
As a result, the business operates not as a system, but as an extension of the entrepreneur himself. And if he is absent from the process for a day, everything slows down. From the buyer's point of view, this is not a business, but ‘work tied to a specific person.’ And such assets are difficult to sell and are worth less.
LLC "EIFOS HUB" recommends:
start preparing for the sale at least 1–2 years in advance. Delegate key functions: sales, customer service, purchasing. Write down your business processes, hire a manager or assistant.
Myth: if a business is profitable, it can be easily sold.
When establishing a company and enthusiastically developing their business, few people think about how they will sell it one day. Selling seems like something distant, almost abstract. But the reality is that 8 out of 10 companies never find a buyer — or are sold for much less than the owner expected.
When evaluating a ready-made business, the buyer does not just look at the income. They are interested in a stable, transparent and manageable asset with a clear and understandable structure that can be scaled up if desired. Today, the value of a company consists not only of walls, buildings and ideas, but also of digital infrastructure, IT tools, marketing, a team and well-established processes. So why is not every business interesting and in demand?
When establishing a company and enthusiastically developing their business, few people think about how they will sell it one day. Selling seems like something distant, almost abstract. But the reality is that 8 out of 10 companies never find a buyer — or are sold for much less than the owner expected.
When evaluating a ready-made business, the buyer does not just look at the income. They are interested in a stable, transparent and manageable asset with a clear and understandable structure that can be scaled up if desired. Today, the value of a company consists not only of walls, buildings and ideas, but also of digital infrastructure, IT tools, marketing, a team and well-established processes. So why is not every business interesting and in demand?
Reason 3: Confusing finances and lack of clear assessment
It is difficult, and sometimes impossible, to assess the real profit of a business if it does not have transparent financial reporting. Or if the founder mixes personal and business expenses and superficially assesses the profitability of key financial indicators.
The buyer cannot understand how much the company actually earns, what its liabilities and expenses are, and what its revenue structure is. The more uncertainties there are, the higher the risks, and therefore the less willingness to pay a fair price.
LLC "EIFOS HUB" recommends:
getting your affairs in order: introducing accounting, separating personal and business expenses. Having at least three years of detailed financial statements, separating personal and business expenses, and understanding the company's valuation are important steps in preparing for a sale.
Reason 4: There is no growth potential in the business.
Buyers are looking not only for stability, but also for growth prospects. If the market is overheated, the niche is narrow, and all the customers are already ‘their own,’ even a profitable business looks like a squeezed lemon.
Too many owners build their businesses ‘for themselves’: everything is convenient, everything works, but it is impossible to scale it up. There is no strategy, no growth plan, no team that can implement it.
LLC "EIFOS HUB" recommends:
to interest the buyer, show them the potential for where the business can grow: new sales channels, geography, product line, automation.
Reason 5: Income is too unpredictable
A business that makes a profit from one-off orders looks unstable. Every month starts from scratch: finding new customers, selling again. To a potential buyer, such a business seems risky.
Even if you work in the service or project consulting sector, you can build in elements of predictability, for example by introducing a post-project support system or annual packages. The higher the predictability, the higher the business valuation and investor interest.
LLC "EIFOS HUB" recommends:
When buying a business or investing, the new owner wants stability and guaranteed recurring income. For example, subscriptions, annual maintenance, regular customers with contracts. This reduces risk and increases the value of the business.
Businesses are not initially built as assets — this is the main reason why businesses fail to sell. Lack of systematicity, dependence on the owner, opaque finances, unstable income, overvaluation — all this makes a business unattractive to buyers. If you want to sell your company on favourable terms one day, prepare for it in advance: build processes, strengthen your team, separate finances, and increase predictable income. A business that is easy to transfer is easier to sell and fetches a higher price; it is easier to manage and easier to live with.
It is difficult, and sometimes impossible, to assess the real profit of a business if it does not have transparent financial reporting. Or if the founder mixes personal and business expenses and superficially assesses the profitability of key financial indicators.
The buyer cannot understand how much the company actually earns, what its liabilities and expenses are, and what its revenue structure is. The more uncertainties there are, the higher the risks, and therefore the less willingness to pay a fair price.
LLC "EIFOS HUB" recommends:
getting your affairs in order: introducing accounting, separating personal and business expenses. Having at least three years of detailed financial statements, separating personal and business expenses, and understanding the company's valuation are important steps in preparing for a sale.
Reason 4: There is no growth potential in the business.
Buyers are looking not only for stability, but also for growth prospects. If the market is overheated, the niche is narrow, and all the customers are already ‘their own,’ even a profitable business looks like a squeezed lemon.
Too many owners build their businesses ‘for themselves’: everything is convenient, everything works, but it is impossible to scale it up. There is no strategy, no growth plan, no team that can implement it.
LLC "EIFOS HUB" recommends:
to interest the buyer, show them the potential for where the business can grow: new sales channels, geography, product line, automation.
Reason 5: Income is too unpredictable
A business that makes a profit from one-off orders looks unstable. Every month starts from scratch: finding new customers, selling again. To a potential buyer, such a business seems risky.
Even if you work in the service or project consulting sector, you can build in elements of predictability, for example by introducing a post-project support system or annual packages. The higher the predictability, the higher the business valuation and investor interest.
LLC "EIFOS HUB" recommends:
When buying a business or investing, the new owner wants stability and guaranteed recurring income. For example, subscriptions, annual maintenance, regular customers with contracts. This reduces risk and increases the value of the business.
Businesses are not initially built as assets — this is the main reason why businesses fail to sell. Lack of systematicity, dependence on the owner, opaque finances, unstable income, overvaluation — all this makes a business unattractive to buyers. If you want to sell your company on favourable terms one day, prepare for it in advance: build processes, strengthen your team, separate finances, and increase predictable income. A business that is easy to transfer is easier to sell and fetches a higher price; it is easier to manage and easier to live with.
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