There’s a hard truth for every business owner pursuing a deal to exit their business…
You must be willing to walk away from a bad deal.
The same is true on the buyer’s side – and alarm bells can sound for either party right up until the deal is signed.
Here are the most common warning signs I’ve seen, which make it challenging to move forward and close the deal.
> The deal structure puts too much risk on the seller post-exit.
> The valuation is based on fantasy projections.
> The buyer insists on overly-restrictive terms and non-competes post-exit.
> Due diligence on the seller reveals significant liabilities or skeletons.
> The buyer gets cold feet and starts quibbling or renegotiating.
> Hidden agendas emerge between buyer and seller.
> Seller obstacles prevent adequate due diligence.
> Too many ‘advisors’ who end up sinking the deal for the business owner.
> Unusually rapid timelines placed on complex deal structures.
There’s an art to letting the wrong deals pass you by, whilst being ‘patiently impatient’ in securing the right deal for you and your business…
#sme #business #exitlaunchpad #M&A #mergers #acquisitions