3 Reasons Why Deals Can Fall Apart

In this article we will discuss some of the key reasons why deals can fall apart. The process of selling a business is both complicated and time-consuming. A business owner will need to be ready to overcome a range of obstacles.

Psychological Factors

Do not overlook the psychological factors involved in selling a business. Buyers enter the process with a variety of preconceived notions about how the process should work. They also have their own preconceived idea of what they consider to be “a great deal.”

Even serious buyers can have highly unrealistic expectations regarding various aspects of a business. This can include its price or its opportunities for future growth. Buyers may stall due to the fact they are not quite ready to buy a business.

Outside parties can also influence buyers, such as advisors, friends or family. Sellers may discover that buyers may actually be several people who are forming a collective opinion on issues regarding the business.

Seller Psychology

Many sellers do not fully understand what is involved in the process of selling their business. For this reason, a seller’s own psychology can play a huge role in a successful sale. Working with a Business Broker before actually placing your business on the market can help.

Many sellers have unrealistic expectations about both price and the time frame in which their business can be sold. Sellers should enter the selling process with realistic expectations in place. It is also important to understand that it may take a year or longer to find a buyer.

Acts of Fate

There are many “acts of fate” that can disrupt a deal. A deal may seem like everything is moving along without problems, only to discover at the last minute that the buyer isn’t able to secure the needed funds as expected.

All parties involved in the selling process need to realize that until a deal is finalized, problems can still arise. It is difficult to anticipate and spot every potential disruption. The team at EBIT Associates can help business owners understand the complexities of selling their business.

Pra Chid/BigStock.com

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