As a professional in the business brokerage industry, I am frequently asked by potential buyers about the motivation behind a business sale. The common inquiry is typically phrased as, “Why are they selling? Is the business going bad?” However, even if the business was experiencing difficulties, it is unlikely that the seller would admit to such a situation and faced with such a question I would never reply yes. Instead, it is my responsibility to provide transparent information about the business’s challenges and offer legitimate solutions to improve its operations. Additionally, I would highlight the unique opportunity that the sale presents for potential buyers to acquire the business at a favorable price.
It is important to note that distressed businesses are not frequently sold in the market. In my experience as a business broker in Queensland for the past couple of years, I have only encountered one such business. There are various reasons why businesses are sold, and financial struggles are seldom the sole factor. In my opinion, buyers who focus solely on the reason for the sale may not possess the necessary skills to evaluate the business and should seek professional guidance before making any purchasing decisions.
