The short answer
In owner-run businesses, a common reason is that the business can’t show it will run without the owner. Close behind come the price the owner expects, the state of the records, the tax set-up, the owner not being ready to let go, and too much revenue from one customer. Most take many months to fix, so they’re best found early.
What are the usual reasons?
| Reason | Can take | Who usually fixes it |
|---|---|---|
| The business runs on the owner | 9 to 18 months | An operational succession firm like Corefield |
| The owner expects a higher price | Quick, if there’s evidence | A business valuator |
| The financial records aren’t clean | 1 to 2 years | Your accountant |
| The tax or financing set-up | Up to 2 years | Tax advisor, lender |
| The owner isn’t ready to let go | 6 months to 2 years | A family business advisor |
| Too much revenue from one customer | 1 to 2 years | You, with help |
| A key employee might leave | 3 to 6 months | You, with help and legal advice |
| Contracts can’t be transferred | 2 to 4 months | Your lawyer |
| The lease is short or can’t be transferred | 3 to 12 months | Your lawyer |
| Equipment needs money soon | 6 to 18 months | You, with help |
| Records only exist in people’s heads | 6 to 12 months | You, with help |
| Too much depends on one supplier | 6 to 18 months | You, with help |
| Partners or family disagree | 6 months to 2 years | A family business advisor |
| {.compare} |
Why is the owner first on the list?
Because it causes several of the others. Messy records, one big customer and staff who might leave are often signs of a business that has always run through one person. Fix that, and the others usually improve too.
Who handles each one?
Most of the list belongs with people you already have: your accountant, lawyer, valuator or tax advisor. The operating items, like customers, key people, equipment and records, often have nobody looking after them. That gap is what operational succession fills.
Can these be fixed during a sale?
Rarely. A buyer’s checks take a few months. Most of these take far longer. Found eighteen months to two years before a sale, most can be changed.