Business deals fall apart everyday, and if you are really serious about buying a business, you will have to do your part to keep your deal in motion all the way to the closing table. How does a buyer keep the momentum going?

Here are a few ways:

First and foremost, go into the business buying process with the realistic attitude that a perfect business does not exist. All businesses are going to come with issues, you will just need to decide on a case by case basis what types and sizes of issues you are willing to overlook or deal with.

Another very common issue that arises with buyers? Don’t over-analyze the business. While it is incredibly important to use your due diligence phase to discover any problems with the business (before they become your problems after closing), there is a point where cautiousness turns to an unnecessary analysis of risk. All business dealings come with a certain amount of risk, there will never be a circumstance where you can avoid it all. Be cautious but not crazy.

Another way a buyer can do their part is not to ask for enormous lengths of time to look at the books. A few weeks should be sufficient. It is unreasonable to ask a seller to pull their business off the market for inordinate amounts of time, especially if you then decide not to buy.

Don’t forget about things like leases and licensing. These parts of the business transaction sometimes involve a lot of back and forth with red tape, so make sure you get started on them right away. You don’t want to be without the proper licenses the day you take over the business.

It is not always an issue with the buyer’s side of the deal that can hold up a sale, so don’t be afraid to push the deal forward if you feel that the other side is taking too long to get you information you need. Due diligence is your chance to run through the financials, but you will need to be aware that the seller is trying to run a business while all of this is going on, so keep your time demands realistic.

The buyer side of the deal can slow a sale down just as easily as the seller side can. If you are serious about buying a business, do your part to get to the closing table and you will have a much better chance for a successful transaction.

Are you a buyer who has been a part of deals that have fallen apart? Do you have questions about the best way to get to the closing table? Please feel free to leave us a comment or question here, and we will be happy to help you with the business buying process.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com