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Scroll any social media platform you’ll eventually see footage of someone saying out loud what should probably have stayed an intrusive thought. It feels a little like people in general have less of a filter – and this can be an issue if you are trying to buy or sell a business.
Business deals are precarious things. They’re the culmination of seemingly endless hours of research, work and negotiation. One would think that a deal so carefully constructed would be sturdy in nature, but they aren’t. Business deals can and do fall apart all the time. Getting to a closing table is nothing short of miraculous because you are dealing with large amounts of money changing hands between people who have their livelihoods riding on even the smallest detail. It doesn’t take much to derail something that feels so high stakes.
Sometimes the thing that derails a deal is so simple it doesn’t feel like it should have that much power. Someone says something crazy.
Maybe the seller divulges way too much information about the personal lives of employees, details which have nothing to do with an employee’s performance but make the buyer uncomfortable dealing with the seller going forward. Maybe an accountant (who has no experience with small business transactions) tells a buyer that the business is on the brink of failure even though it isn’t (and the accountant had no idea what they were talking about). Maybe someone’s father-in-law comes in at the 11th hour and tells one side that the contract they’ve negotiated for almost a year is invalid even though nothing could be farther from the truth. Maybe one side brings up something politically charged at a meeting and the meeting devolves into a screaming match.
What do you do if you end up in situations like these? Be ready for it to happen.
The chances of a deal going 100% smoothly from beginning to end is essentially zero. Know going in that the people who buy and sell businesses are a tough bunch. Big type-A personalities can clash over almost anything. Then there’s someone’s blood, sweat and tears being exchanged for a lot of money. Add to that someone opening their mouth when the smart move was to say nothing at all and you can be left with a big mess.
Keeping your cool when someone says or does something crazy will help you step back and look at the situation with a clear head. Does it really matter if the person one the other side of the closing table shares all of your political views? No. Does the opinion of someone’s father-in-law or an accountant who have very little to do with a deal matter? Not really.
The only way to determine if what you are dealing with is something that needs to end a deal (or is just simply someone opening their mouth when they shouldn’t) is with an objective view. When something in your deal goes sideways, when someone says something completely nuts, when unnecessary opinions poison the well – take a step back. Talk to your business broker about your concerns. Decide if what’s going on is really something that should kill your deal. If you are mentally prepared for something crazy to happen you’ll be ready to look at the situation with clarity.
Are you a business buyer or seller who had a deal go sideways and have a story to share? Do you have questions about how your business broker can be instrumental in navigating issues? Ask us! Leave any questions or comments and we would be happy to help.
Michael Monnot
941.518.7138
Mike@InfinityBusinessBrokers.com