Everyone knows that marketing and selling is all about knowing your customer. Therefore, as you go to market your business, who is your customer?
A recent survey by Businessesforsale.com of business buyers in their database revealed that 39.9% of buyers are employed full-time, 24.8% are self employed, and 20.6% are still business owners. Therefore over 50% of your potential "customers" are not currently employed by a firm, and probably own or have experience owning a small business. My experience as a business broker and M&A intermediary suggests that it is even higher than that, since most of the buyers that are gainfully employed rarely take the step to purchasing a business.
This means to effectively market your businessto the largest group of buyers, you need to appeal to a sophisticated audience that has experience with small businesses. They understand cash flow and management issues. They might have had a business for sale themselves, and know how the process works.
One of the most important factors is to be straightforward and upfront. These buyers cannot be fooled by a "bait and switch" tactic used by many business brokers who inflate earnings and revenue to get buyers interested in the hope of persuading them to buy the business. All financial reports must be complete transparent. This does not mean you should not adjust them to show the real owners benefit, or taking out one time expenses; it means that you need to show exactly what adjustments you are making with clarity and simplicity.
There is no such thing as a perfect business, and these buyers understand that. In addition to making the financials as transparent as possible, it is also important to articulate any problems. This is not to say you advertise that you think one of your past customers is going ot initiate a lawsuit against you. But, there is a better chance these buyers are sophisticated enough to ask the right questions during due diligence, and to make sure you sign the appropriate representations and warranties.
Typically there is not a single problem that will stop a deal, as I said all business have problems. What does stop a deal is surprises, because it negates any trust the buyer has with the business owner, and then they will begin to question everything. It is much better to give the buyer a straightforward look at your business, and typically what you believe to be a big issue can be taken care of, and you will still receive maximum value for your company.
Princeton Capital Strategies, llc.
Princeton Capital Strategies, llc.
Mergers & Acquisitions (M & A)is a unique business opportunity to sell their business, but because most business owners only sell a business once in their careers, they learn too late how to work with business brokers, business valuation firms, and investment banks. Princeton Capital is an M&A intermediary in the CT NY area that provides value beyond that of a typical business broker. Princeton Capital can bring more qualified buyers to a business owner in less time, because our methods come from world-class investment banks instead of typical business brokers. 
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Whereas I agree with the premise of your article, I am not sure the buyers are as willing to put up with problems as you describe.
Thank you for your sound advice, however; I don’t agree that there are no problems that will stop a deal. There could be some major “deal breakers” such as legal issues.