You’ve poured years of sweat and sacrifice into building a company you’re proud of. But when it’s time to sell—whether for retirement, a new venture, or simply to take a well-earned break—many owners face a painful truth:
👉 Most small and mid-sized businesses that go on the market never sell.
We spoke with Bob Latham, Managing Partner at IBG Business and a respected business broker with 30+ years of M&A experience. He revealed the biggest reasons deals fall apart—and what you can do now to stay out of that statistic.
1. One Customer Owns Your Revenue
“Probably the biggest red flag we see more frequently than you might think is extreme customer concentration,” Bob explains. “You can literally have 50 or 60% of your business coming from one customer. If that customer leaves, the company’s going to have a very hard time surviving, much less growing out of that. That’s one of the first things a buyer is going to look for.”
Why it matters: Heavy dependence on one or two clients scares off buyers and drags down valuation. Diversifying your customer base spreads risk and strengthens your negotiating power.
2. Financial Records You Can’t Trust
Bob doesn’t mince words: “Surprisingly large businesses can have really bad books and records. It makes it very hard to verify financial performance—and therefore, how do you value the company if you can’t trust the earnings?”
Even profitable companies lose buyers if they can’t produce accurate profit and loss statements, balance sheets, and cash-flow reports.
Why it matters: If buyers can’t trust your numbers, they’ll walk away or slash their offer. Clean, verifiable financials directly raise the price your business commands.
3. The Business Can’t Run Without You
This is the most common—and painful—problem for owners.
“If the owner can’t take a week or two of vacation without the wheels falling off, that kills the value of the company,” Bob says. “He feels really important—and he is—but he’s so important they can’t possibly have him step away.”
Why it matters: Buyers don’t pay for dependency; they pay for scalability. If your company only works when you’re in the center, it’s unsellable.
Where MacklinConnection Comes In
While customer concentration and bookkeeping require operational fixes, this third challenge is squarely in your control today—and it’s where MacklinConnection excels.
We work side-by-side with owners and their teams to:
- Develop managers who take true ownership
- Shift company culture from dependency to accountability
- Build communication structures that keep things running—whether you’re in the office or on a beach
When leaders invest in leadership development, the business becomes more valuable, more scalable, and far more attractive to buyers.
💡 “If your goal is to exit in the next few years, your leadership team—not just your numbers—will determine your legacy.” – MacklinConnection
What to Do Next
Ask yourself: Can my business run without me? That’s the same question every buyer will ask.
If your answer is “not yet,” you don’t have to fix it alone. Schedule a discovery call with MacklinConnection to:
- Build a team that carries the business forward
- Reduce buyer risk and increase company value
- Position your company for a profitable sale—or simply a more balanced life
🎧 Don’t miss our full podcast episode with Bob Latham for more insights, including why 50–60% of owners who approach a broker get turned away, and how addressing just a few key issues can sometimes double or even triple your valuation.
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