Scary Statistics
Scary Statistics in Business Sales
It is the time of year when we get the results from the listings sites for national stats on business sales. It is also when we as a company at Transworld Business Advisors review internal statistics. Now in most cases business brokers stats don’t mean alot but given that we are the largest and do over 300 plus transactions a year the level of volume and the data drawn from it warrants some attention. The following chart shows the deal volume for 2015. In essence we were flat as year over year but volume was up.
The Stat that shook me the most was one we kept internally here at Transworld. We track all contracts and success rate (i.e. getting to closing) . The national average for success rate is about 20% for all brokers, internally we run about 35%. Here in Orlando we were closer to 40%. But that is not the important stat. The number that shook me was that of the deals that died, 63% of the died when there was another broker involved.
That was such a concerning number that we drilled deeper into it. Namely to find out what was the root cause of the deal failing. In over 80% of those failures we found that at the root was a level of poor execution and expectation setting. Lesson learned…..make sure you partner with folks who know what they are doing #experience matters.
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