According to the Wall Street Journal, three out of four startups fail. It is no secret that making it in the business world is tough, but what does this statistic mean for business buyers? It may be concerning to think that the buyer's market is flooded with failing businesses. However, this statistic is not always a negative for buyers.

Presenting a small business to a prospective buyer is akin to going on a first date; first impressions are extremely important. The instinct of the business owner may be to mask any flaws, limit anecdotes to ones of happy employees, and inflate the importance of the business's impact in the market. Disclosing "baggage" flies against conventionally accepted courting practices.