We unpack the reasons why even good businesses are struggling to be sold. By Kobus Oosthuizen Through the years SA Franchise Warehouse has advertised a fair number of genuinely well-priced existing businesses and while there is no shortage of interest from credit-worthy prospective buyers, very few sale/purchase transactions where the purchaser had to procure funding, as is most often the case, ever materialised. Why is it that a profitable business operating under the banner of a great brand is difficult to fund, even if the purchaser meets all the requirements as far as own contribution, credit record and skill sets are concerned? More often than not the reason for declining the application relates to the valuation and/or financial compliance or the integrity of information relating to the business being sold. An existing business sold as a going concern should be valued using either the future discounted cash flow or earnings method. Rather than relying on what the current owner ...