WHAT ARE THE TOP 9 DEAL KILLERS WHEN SELLING A BUSINESS
Finding the right buyer for your business for sale is just the first step in an advisor’s job. However, just because a buyer is secured, does not mean there aren’t obstacles that can get in the way of the deal. An experienced advisor like Transworld Business Advisors can help avoid pitfalls and keep the deal moving along smoothly. Here are the top 10 deal killers to avoid. Time – As the saying goes, “Time kills deals”. Whatever the reason for the hold up, keeping the deal process moving along track is key to ensuring both buyers and sellers get to the closing table. Unrealistic Expectations – Perhaps the seller feels the business is worth more than what the market indicates, or the buyer is negotiating for more than what the seller is willing to provide. Regardless, unrealistic expectations lead to lack of confidence, which can put a halt to the deal. Due Diligence Findings – Due diligence can either provide assurance to the buyer or uncover unexpected problems. Sellers should disclose all information known prior to due diligence to avoid unpleasant surprises that may potentially scare away the buyer. Lack of Motivation – Sometimes a seller lists their business for sale – but aren’t exactly ready to sell – or a buyer gets cold feet. Lack of motivation from either party is a sure way to interrupt the flow of the business sale transaction. Finance issues – No money? No deal. If the buyer is having a hard time obtaining financing, or the seller is reluctant to provide seller financing, the deal can go sour quickly. Inaccurate or poor bookkeeping – Clean books and records are key to maintaining the buyers interest. It’s important to always maintain tight records to ensure that when the time comes to sell, the books – and more so the business – look their best. Declining revenues – If recent sales and revenues are on the decline, this may lead to buyer hesitation. That’s why it’s important for sellers to continue to run a strong business, especially when ready to exit, to keep the business appealing to the buyer. Landlord issues – A difficult landlord can negatively impact a deal. Sellers should check their lease for any language about transfers and changes in ownership to be prepared and avoid setbacks. Inexperienced advisor – Buyers and sellers alike rely on their broker to quarterback the deal. Working with an experienced advisor is imperative to the success of the business sale. Contact Transworld Business Advisors today to see how we can help you avoid these common pitfalls and quarterback your deal to get you paid and on your way to your next adventure.
CALL MICHAEL SHEA P.A. AT 321-287-0349 OR EMAIL MIKE@TWORLD.COM