Posted on Mar 8th, 2025

Author: Sri Sambhari

Executive Summary

Many small business owners expect far more than what the market is willing to pay. I recently worked with a vending business owner generating $120K in revenue. The market value for such a business is typically 1x revenue ($120K), but the owner expects 2x revenue ($240K). This isn’t an isolated case—70% of businesses listed for sale don’t sell because owners are misaligned with market realities.

This experience reinforced why I blog about the business sale process—many owners simply don’t understand how private markets work.

Key Takeaways from This Negotiation

1. The Gap Between Expectations & Reality

• Owners often believe their business is worth more than the market will pay.
• Example: Expecting $2M for a $1M business is common but unrealistic.

2. How Private Markets Actually Work

• Small businesses are typically valued based on Revenue Multiples or SDE Multiples.
• A vending business usually sells for 1x revenue, not 2x or 3x.

3. Why 70% of Businesses Don’t Sell

• Owners don’t prepare for sale early enough.
• Financials aren’t clear or strong enough.
• Buyers want predictable profits, not just revenue.

What Business Owners Should Do Instead

✅ Get a real valuation—not just a guess.
✅ Understand what buyers look for (profits, systems, scalability).
✅ Prepare early—waiting until the last minute can mean lost deals.

Thinking About Selling? Let’s Talk!

At HiTrend, we specialize in business transitions for small business owners, particularly those considering an exit due to retirement.

We do:

• Acquire businesses
• Business valuation & exit strategy consulting

Fill out this form for a free consultation!