Mr. Richard Parker: is the author of the “How To Buy A Good Business At A Great Price” series which is sold in over 80 countries. He is the founder of Diomo Corporation and has personally purchased eleven businesses. Learn more about Richard and his materials at diomo.com (www.diomo.com)
The industry of business buying has some very interesting, yet dismal, statistics. When I have mentioned these numbers to people outside this industry, they are stunned.
The 90% of all of the people who begin the search to buy a business never complete a transaction.
- Only 20% of all of the businesses listed for sale ever sell.
- Business brokers are only involved in 10% of all deals.
- 50% of all transactions agreed to betwen the buyer and seller fall apart during the due diligence stage and never close.
Why is it so important for you to know this? Let’s look at each one individually:
Why 90% Never Buy
Interestingly enough, a recent poll indicated that 50% of all Americans dream of owning a business. One would think that, with such high numbers, far more people would be successful. After all, a 90% failure rate is abysmal. There are several factors why this happens.
Mr. Nikos Konstandaras is managing editor and a columnist of Kathimerini, the leading Greek morning daily. He is also a contributor to The BusinessThinker.com This editorial is also published in Kathimerini.
Vivi has been cutting men’s hair in my neighborhood for the past 20 years. She is not the typical, chatty barber. She listens while her customers talk. “Today no one speaks,” she said. “If I try to start a conversation, they say, ’No, no, I don’t want to think.’ They sit in silence.”
It was not always like this. Vivi’s quiet professionalism and gentle smile allowed her customers to open up to her as if they were old friends. “They are dazed. They will burst,” she said, shaking her head sadly. And she had noticed this before the most recent round of notices for yet another extraordinary tax, before the latest property tax.
The nation’s blues were evident this summer.
Mr. Nikos Konstandaras is managing editor and a columnist of Kathimerini, the leading Greek morning daily. He is also a contributor to The BusinessThinker.com
This editorial is also published in Kathimerini.
If there is anything positive in these feverish days, it is that no one can pretend not to understand the severity of the crisis, be they in Greece or elsewhere.
The fact that the government is preparing measures that include tens of thousand of layoffs in the public sector and a further reduction in pensions means that it understands it has no room to maneuver: It will do that which it fears will lead to its fall. It has to deal not only with the dictates of the troika but also the fact that even its strongest supporters — such as France — can no longer hide their exasperation with Greece’s inability to carry out policy.
Today not even the most zealous of conspiracy theorists can convince anyone that the turbulence in German politics, the cracks in the French banking system and the rollercoaster rides on the international markets are nothing but a concerted effort to buy Greece on the cheap. Continue reading