Business brokers from all across the United States were asked what issues caused their deals to fall apart, and instead of a wide range of reasons, the same few came up time and time again. It can be very difficult to get a business deal all the way to the closing table, but knowing ahead of time what types of problems might derail your deal can help you to avoid them. What follows are a series of articles about the major deal-killing culprits and how you can avoid them in your own business transaction

Deal Killer #3: The Buyer, The Seller (Or Both) Take Issues That Arise Personally

As a seller, it can be tough to put a price on your business. For many entrepreneurs, their business represents a lifetime of work. Your business is your baby, and when you are trying to sell it can be difficult to separate the emotional ties you have with your business from the very impersonal world of business transactions.

It is important to remember that anyone looking to purchase your business is considering it purely as an investment. They are looking to own a business, and until the deal is closed, it may or may not be your business that they end up with. Be prepared to have buyers ask difficult questions about your financials and about why you do things the way you do. These are not personal attacks, they are just questions from someone who is considering a business investment. It is incredibly important to separate your emotions from the transaction and see all aspects of your business sale in an objective light. To do otherwise will certainly end in a dead deal.

As a buyer, it can be very easy to offend a seller – even if that was not your intention. The business holds no emotional value for you, so you look at it and at the price you are willing to pay for it with a completely different perspective than those who will be on the other side of the closing table. It is important to remember this aspect of business sales if you want to keep a deal moving forward.

For example, don’t make a lowball first offer. You might want to see how deep of a discount you can get on the listing price, but this almost always kills your chances of making a deal. A lowball price insults a seller, most of the time to the point that they will refuse to work with you. If you are serious about the business, make a serious offer and remember that this business probably means a lot to the seller.

For both sides it is important to remember the ultimate goal, which is to get to the closing table. Think and act both objectively and respectfully and you will have a much better chance of getting a deal done.

Are you a buyer who has inadvertently offended a seller who now refuses to work with you? Are you a seller who wants to know how to avoid lowball offers? Leave us a comment or question here, and we will be happy to answer any questions you might have.

Want to read Deal Killer #1: The Seller Tries to Hide the Skeletons in the Closet? Click Here.

Want to read Deal Killer #2: The Business is Overpriced? Click Here.

Want to read Deal Killer #4: Buyers and Sellers Grow Impatient With The Deal and With Each Other? Click Here.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com