Imagine planning to sell your business for $5 million, $10 million, or even $20 million to secure your family’s future and live the life you’ve always dreamed of. But after two exhausting years of trying to sell, no one offers anything close to your expectations.

Now what?

What does this mean for your future, your family, and your employees?

For many entrepreneurs, their business is their most valuable asset—worth more than their house, superannuation, and all other assets combined. Yet, only 20%-30% of businesses that go to market actually sell, according to Forbes and the Exit Planning Institute. A BizBuySell report echoes this, showing that only one in four listings close successfully.

So why don’t businesses sell? The reasons fall into two main categories:

1. Out of your control: Economic conditions, government policies, pandemics, or war.
2. Within your control: Poor financial performance, over dependence on the owner, lack of customer diversification, or weak brand positioning.

Given how much is at stake, wouldn’t it make sense to ensure your business is truly saleable before going to market?

Options When Your Business Doesn’t Sell

If your business fails to sell, you may face these challenging scenarios:

1. Keep Running the Business
   Continuing to work may be an option if your health allows, but it risks diminishing the business’s value over time as motivation fades and competition intensifies. This could eventually lead to a fire sale or liquidation.
2. Hire a Manager and Retain Dividends
   Employing a manager lets you step back while maintaining control and a dividend stream. However, you forfeit the lump-sum payout you’d get from selling, and future dividends depend on the manager’s performance and market conditions.
3. Transition to an Employee or Family Member
   A management buyout or passing the business to a family member may be viable. Often, vendor financing is required, meaning you get paid over time based on future profits, leaving you exposed to risks of default or declining performance.
4. Liquidation
   Closing the business and selling its assets is the least desirable option, yielding minimal returns and losing the value of goodwill, intellectual property, and an established workforce.

Plan Ahead to Maximise Your Chances

If your goal is a successful sale, don’t rely on luck. Instead, ask yourself: Why won’t my business sell? Think from a buyer’s perspective, address potential roadblocks, and focus on building a business that’s an attractive, valuable asset.

Preparation is key: Use the time before going to market to strengthen your business—reduce owner dependence, improve financial performance, and enhance market positioning. This not only increases your chances of selling but also boosts valuation multiples, ensuring you’re fully rewarded for your hard work.

By planning ahead, you can avoid seller fatigue, depreciation of enterprise value, or liquidation and instead secure a smoother, more lucrative exit.