Businesses list for sale on the internet come in many varieties.
Some listings are from professional brokers, some better than others and some are from the owners themselves.
Assuming the person listing the business is a qualified professional they may choose to leave out most if not all of the financial information.
The reasons may be:
- The seller hasn’t made it available yet but was anxious to get business to market.
- The less is more rule might be in place…..trying to get people to ask questions.
- The business may be easily identifiable to anyone looking at the ad…this is especially true in small cities and niche markets or one of a kind businesses. Releasing even something as benign as annual sales may cause concern to the seller.
- The worst case is that the numbers are not reflective of a good business
My suggestion would be if the business sound interesting to you go ahead and request more information and find out what the story is.
Many really good businesses don’t advertise their sales, cash flow, FFE, etc because they want to control who gets that information.
Richard Roberts, ABI is the Senior Managing Broker at AEGIS Business Brokers, LLC and holds an Accredited Business Intermediary classification by the American Business Brokers Association and is a member of the International Business Brokers Association, International Franchise Professionals Group, Chambers of Commerce, Committees and Volunteer Organizations. Contact Richard at 479.689.4455 or firstname.lastname@example.org.