Why So Many SMEs Never Find a Buyer — and How to Remove the Obstacles

In French-speaking Switzerland, thousands of SME owner-managers reach retirement age every year or wish to move on to something else. Yet a worrying reality stands out: more than 80% of businesses looking for a buyer never find one. Behind this figure lie decades of work, jobs, unique know-how… and often a silent liquidation that nobody had anticipated.

So why is it so difficult to transfer an SME in Switzerland? And above all, what are the concrete levers for breaking out of this impasse? That is what we will explore in this article, through the most frequent obstacles and the solutions that really make a difference.

A structural problem affecting the whole of French-speaking Switzerland

Business transfer is not a marginal phenomenon. According to estimates from the FSPC (Fédération suisse des petites et moyennes entreprises) and other sector studies, between 60,000 and 70,000 Swiss SMEs will need to be transferred by 2030. In the French-speaking cantons — Vaud, Geneva, Fribourg, Valais, Neuchâtel and Jura — the dynamic is identical.

The ageing of founding owner-managers is the main cause of this wave of sales. Many set up their business in the 1980s–1990s and are now approaching 60 or 70. The problem is that most of them have not planned their exit.

The figures that give pause for thought

• Around 27% of Swiss SME owner-managers are over 55.
• Only one third of transfers result in a successful external acquisition.
• More than 40% of planned sales end in closure or liquidation for want of a buyer.
• The average duration of a sale process is 2 to 4 years — a timeframe often underestimated by sellers.

These figures reveal an urgent situation: without concrete action, an entire regional economic fabric risks eroding.

The most frequent obstacles in transferring an SME

Before talking about solutions, the obstacles need to be named clearly. They are human, financial and structural all at once.

1. The owner-manager waits too long to prepare

This is undoubtedly obstacle number one. Many business owners put off thinking about their succession, sometimes for lack of time, sometimes out of a refusal to “let go”. Yet a successful transfer must be prepared at least three to five years in advance.

A late start considerably reduces your room for manoeuvre: less time to optimise the valuation, less time to find the right buyer profile, and less time to support the transition.

2. A valuation disconnected from market reality

Many sellers overestimate the value of their business. It is only human: they have devoted years, sometimes an entire lifetime, to building something. But the market follows objective criteria.

Too wide a gap between the asking price and the real value of the SME drives serious buyers away. The elements that are often poorly accounted for include:

• The excessive dependence of the business on the owner-manager personally
• The absence of formal contracts with clients or suppliers
• A poorly diversified client base (one or two clients accounting for 50% of revenue)
• Ageing equipment or obsolete technology
• Insufficient equity or a fragile financial structure

3. Lack of visibility among potential buyers

An SME for sale is not a property listing. You cannot easily publish “business for sale” without alarming clients, suppliers or employees. This necessary confidentiality makes it harder to connect with serious buyers.

Yet without targeted, confidential visibility, it is very difficult to attract the right profiles. Many owner-managers rely on word of mouth or informal approaches — which considerably limits the number of options.

4. The human and emotional factor

Selling your business is also an emotional ordeal. For many owner-managers, the business is an extension of themselves. The prospect of “handing over” generates conscious or unconscious resistance that can sabotage negotiations.

It is not uncommon to see a transfer fall through at the last moment because the seller was not really ready to let go — even though all the objective conditions were in place.

5. Financing the acquisition: an obstacle on the buyer's side

On the buyer's side, access to financing remains a major hurdle. Swiss banks, though solid, apply strict criteria to acquisition loans. The buyer must often contribute 20 to 30% of the purchase price in equity, which excludes many qualified but less wealthy candidates.

This reality sometimes prompts the exploration of alternative financing structures, such as a vendor loan or temporary minority shareholdings — solutions that are still too little known in French-speaking Switzerland.

How to remove these obstacles: concrete solutions

The good news is that each of these obstacles can be overcome with the right approach and the right partners. Here are the levers that really make a difference.

Plan the transfer 3 to 5 years before the sale

The earlier you start preparing your exit, the more cards you hold. This preparation includes several strategic actions:

• Reduce the business's dependence on your personal presence
• Formalise processes, contracts and internal documentation
• Build a management team capable of operating without you
• Optimise profitability and financial indicators
• Clean up the balance sheet and clarify the legal structure

A well-prepared business sells better, faster and at a better price. It is as simple as that.

Commission a professional, objective valuation

Calling on a business valuation expert makes it possible to set a price consistent with market reality. This step is essential to avoid deadlock during negotiations and to give your file credibility with buyers and their bankers.

In French-speaking Switzerland, several valuation methods are commonly used: the EBITDA multiples method, the DCF (Discounted Cash Flow) method or the capitalised earnings value. A specialist adviser will know which method suits your sector and the size of your SME.

Widen the circle of potential buyers

Do not limit your search to your own circle or your sector. Serious buyers can come from very varied backgrounds:

• Executives changing career who wish to become entrepreneurs
• Active entrepreneurs seeking to diversify or grow through acquisition
• Acquisition funds or investors specialising in SMEs
• Family successors (children, members of the extended family)
• Internal buyers (managers or employees of the business via an MBO)

Working with a platform or a firm specialising in SME transfers in French-speaking Switzerland gives you access to a base of qualified buyers while preserving the confidentiality of the process.

Explore creative financing structures

To unlock situations where bank financing is insufficient, several solutions are worth considering:

• A vendor loan: the seller agrees to receive part of the price on a deferred basis, making the acquisition easier
• A temporary minority shareholding retained by the seller after the sale
• The use of SME loan guarantees offered by bodies such as SAFFA or the French-speaking Swiss guarantee cooperatives
• A phased sale with the transfer carried out in several stages over 2 to 3 years

Get support from business transfer specialists

Transferring an SME is one of the most complex operations a business owner will ever have to manage in their career. It requires legal, tax, financial and interpersonal skills that few owner-managers master on their own.

Surrounding yourself with an adviser specialising in SME sales and acquisitions in French-speaking Switzerland allows you to:

• Structure the process from end to end
• Prepare a professional presentation file (information memorandum)
• Identify and approach buyers confidentially
• Negotiate the terms of the sale in your interest
• Coordinate the legal, tax and financial aspects

Do not let your business disappear for lack of planning

Every SME that closes for want of a buyer is a story that ends, jobs that vanish and know-how that is lost. This is not inevitable. In the vast majority of cases, failed transfers could have been avoided with better preparation and appropriate support.

If you run an SME in French-speaking Switzerland and are considering a sale in the coming years, the best time to act is now. Not in two years. Not when you are exhausted. Now, while you are still in control of your entrepreneurial destiny.

A successful business transfer is not a stroke of luck. It is the result of serious preparation, a realistic valuation, a targeted search strategy and professional support. The tools and the experts exist. It is up to you to mobilise them.

Would you like to take stock of your situation and explore the transfer options for your SME? Contact our business sale specialists in French-speaking Switzerland for an initial confidential, no-obligation conversation.