Hi everybody. This is Robert from Freedom Factory and I want to talk to you about it a pretty serious topic today, and it's the biggest reason that deals don't close. Now, personally, my close rate on deals has been really strong over the last 10 or 15 years, but I see a lot of people, you know, the industry standard, they close less than 50% of deals.

So, it's almost unbelievable when you think 50% of people that agree to pay a price for a business don't actually buy it. And I want to jump into why that is, and more importantly, how can you can make sure that doesn't happen to you. So first of all, when the biggest reason that I see that deals don't close is usually when the numbers drop off a cliff.

And the reason that happens is because the entrepreneur is trying to do too much. So as running a business as an entrepreneur takes a lot of work, and when we sell a business, we're partners for a short period of time. I talk a lot about our 147-day selling process and a lot of times it works in that time. Sometimes it takes a little bit longer, sometimes or even faster. But the number one thing when we're selling your business is to let us do our job as you have to do your job and make sure the numbers are still going on the same trend line that they were. If you're growing at 3% a month. The this time can be the absolute most important time for you to do it. Not only because you get paid the best. What that means, for example, let's say, you're selling your business on earnings and you're getting a multiple of five times earnings. When you sell it, you're actually getting paid six times on every sale you ever make, which means you're getting paid once in the cash and five times you're earning is when you sell it.

Now, if you were making six times your usual value when you sell a business, do you think you would sell harder? I sure would. And having the right broker and the right partner to be able to sell it for you, we're going to handle the process. We're going to handle the phone calls. We're going to handle the Q and a, the diligence.

We're going to prequalify your buyers. We're going to take all that off of your plate. In fact, until the buyers had been prequalified, and we have an LOI on the table, we don't even put them on the phone with you. We want to preserve your time as much as you can so you can run your business as profitably as we can, and we can do our job.

And again, what we do at Freedom Factory is make sure to build as much deal tension as we can. So that's getting the most people introduced to the business, either through a combination of inbound or outbound and marketing materials going through a Q and A process and getting all the buyers to go to our process, meaning the sellers process.

We do Q and A here. We do prequalification here; we do LOI's here. We start to go through and we get the funnel and we find the perfect buyer and the perfect fit for you. Bottom line is the partnership's pretty simple - for the next year, you run your business, we focus on selling your business.

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Freedom Factory