Kinza here. This week I'm covering:

1. Why 80% of businesses that go to market never find a buyer

2. The four pillars that make businesses irresistible to acquirers

3. The common mistakes that instantly kill buyer interest

4. And more...

The Business That Nobody Wanted

I watched a profitable $5M service business sit on the market for 18 months without a single serious offer. Great financials, desperate owner.

But when I looked closer, I understood why buyers kept walking away.

The top 3 customers represented 60% of revenue. The owner made every major decision. Customer relationships depended on him personally. The "systems" were actually just him working 70-hour weeks.

On paper, it was a $5M business. In reality, it was a well-paid job nobody wanted to buy.

The Four Pillars of a Sellable Business

Pillar #1: Revenue That Survives Your Departure

Buyers Want:

• No single customer above 15% of revenue

• Recurring revenue above 40% of total

• Contracts longer than 12 months

• Revenue tied to market demand, not owner relationships

Pillar #2: Operations That Run Without You

Buyers Want:

• Documented processes for critical functions

• Management team running day-to-day operations

• Decisions made without owner input

• Performance tracked by others

Pillar #3: Clear Growth Opportunities

Buyers Want:

• Market trends supporting 5+ years of growth

• Expansion plans using existing resources

• Realistic timelines and budgets

• Competitive advantages hard to replicate

Pillar #4: Clean Financial Story

Buyers Want:

• Three years of consistent, audited statements

• Clear profit drivers and cost structure

• Predictable cash flow patterns

• Financial systems providing real-time visibility

The Sellability Test

The 90-Day Test: Could your business maintain current performance if you disappeared for 90 days? If no, you don't have a sellable business. You have a well-paying job.

The Stranger Test: Could an intelligent stranger understand your business in 30 minutes? If no, you haven't documented your business well enough for sale.

Common Sellability Killers

• Customer Concentration: Top 3 customers representing more than 45% of revenue

• Owner Dependency: Business revolving around your personal involvement

• Financial Chaos: Messy, incomplete, or unreliable books

• No Growth Story: Can't articulate realistic expansion opportunities

Start Building Sellability Now

Don't wait until you want to sell. Life has a way of forcing decisions when you're least prepared.

I've seen too many business owners scramble to create sellability after a health scare, family emergency, or market shift. By then, it's too late to get full value.

The best time to make your business sellable is when you have no intention of selling.

Until next time,