For a business to sell in New York (or anywhere else for that matter), there has to be a seller - and a buyer. The buyer of today is a bit different than the one of yesterday's New York City. Today's buyer is not a risk-taker, cares about the financials, and seems to be very concerned about price. Unfortunately, business buyers have to understand that they cannot buy someone else's financial statements. The statements might be a good indication of what a new buyer can do with the business, but everyone executes things differently. It is these differences that ultimately determine how the business will perform . The price may not be the right question for the buyer to ask. What is usually the most important question is how much hard cash is required to buy it.
Today's buyer in New York is finicky, due in part to the fact that he or she is not a risk taker. Quite a few buyers enter the business buying process and when it comes time to execute the transaction, cannot make the leap of faith that is ...
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A recent survey revealed the following about the length of time that selling an average business requires:
Time Period
% of Businesses Sold in This Time Period
1 to 3 Months
9.7 %
4 to 6 Months
28.3%
7 to 9 Months
38.0%
10 to 12 Months
15.9%
13 to 18 Months
7.6%
19 + Months
0.7%
It took from four to 12 months to sell approximately 82% of businesses, with 38% percent falling into the seven- to nine-month range. Of course, some businesses sell more quickly (even in New York), but at the other end of the spectrum, over 8% are on the market for over 12 months.
Why does it take so long to sell a business? In general, price and ter ...
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Advance Publications Inc. of New York has raised $500 million from its stake in Discovery Channel and is ready to make an aquisition. They even hired Andrew Siegel (previously VP of corporate development at Yahoo Inc.). To help them figure out how to spend the money. Advance holding group owns more than 20 leading newspapers, 40 regional weeklies, and Conde Nast Publications, but has often been criticized for failing to develop a strong digital strategy.
If you have an Internet publishing company you ahve been considering selling, this might be the perfect opportunity to find the right buyer. Let us help!
Whether you are in New York, New Jersey or another country, you can apply these 12 principles to increase the value of your business when it is time to sell.
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