In many cases, the buyer and the seller arrive at an tentative agreement on the sale of the business, only to fall apart. There are reasons why this happens and, once understood, many of the worst can be avoided
In a business corridors survey in the United States and Canada, similar reasons were cited so often that a causal pattern began to emerge.
The following are 4 situations and factors that affect the sale of a business.
- The seller does not reveal problems
When a seller is not in advance about business problems, this does not mean that problems disappear. They leave later, usually at some point after an tentative agreement has been reached. - The buyer has doubts about the price
In some cases, the buyer accepts a price, just to discover that the business does not, in his opinion, will not support that price. The agreement is in danger when the seller wants more than the buyer feels that the business is worth. - Both the buyer and the seller become impatient
During the course of the sales process, it is easy, in the case of both parties, so that the impatience occurs. Buyers continue to wish increasing information volumes, and sellers get tired of everything. Both parties must understand that the closing process takes time. However, I should not take so long that the treatment is in danger. It is important that both parties, if they are using external professionals, only use those who know the commercial closing process. Most are not. - The seller does not really want to sell
In too many cases, the seller does not really want to sell the business. Selling a business has many emotional ramifications; A company often represents the life of the seller. Therefore, it is key that possible vendors make a firm decision to sell before going to the market with the business. If there are doubts, these should be resolved before going to the market.
An final note
Remember these components to work towards the success of business sale:
- Good chemistry among the parts involved.
- A mutual understanding of the agreement.
- A mutual understanding of the emotions of both the buyer and the seller.
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