Why Deals Don’t Close

Photo Credit: faungg via Compfight cc

Photo Credit: faungg via Compfight cc

Sellers

· Sellers don’t have a specific reason for selling.

· Sellers are testing the waters to check the marketplace and the price. (They are similar to the buyer who is “just shopping.”)

· Sellers are completely unrealistic about the price and don’t understand the marketplace for their business.

· Sellers are not honest about their business or their situation. The reason they want to sell is that the business is not viable, revenues are declining, possible environmental problems, new competition is entering the marketplace or some other serious issues that the seller has not revealed.

· Sellers don’t disclose that there are more than one owner and they are not all in agreement.

· Sellers have not checked with their outside advisors about possible financial, tax or legal implications of selling their business until an offer is presented.

· Sellers are unprepared or misinformed about providing seller financing to complete a transaction. This is key since according to a recent WSJ survey, up to 90% of closed transaction involved some form of seller finance.

Buyers

· Buyers don’t have a valid reason to buy a business, or the reason is not strong enough to overcome the fear of purchasing a business.

· Buyers have unrealistic expectations regarding the value/price, appropriate terms, the buying process, and how family-owned businesses operate.

· Buyers aren’t willing (some of them) to do the work necessary to own and operate their own business.

· Buyers are influenced by a spouse (or someone else) who is opposed to the purchase of a business when that person is not informed on what is being purchased.

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M&A Business Advisors represents sellers and buyers of privately owned businesses in a wide range of industries in California and Nevada. Our services include Selling a Business, Buying a Business, Mergers & Acquisitions, Business Sales and Acquisitions, Valuations, Opinion of Value, SBA Finance and Business Consulting. Sell your Business, Buy a Business, How do I determine the Value of a Business, How do I Sell my Business Confidentially, What is a Safe Way to Sell my Business, How long does it take to Sell a Business, How do I Sell a Business in California, How do I Sell a Business in Nevada, Search Businesses for sale. We represent Sellers and Buyers in Southern California, Los Angeles County, Orange County, Ventura County, Santa Barbara County, Kern County, San Bernardino County, Riverside County, San Diego County, Los Angeles, Torrance, Gardena, South Bay, San Fernando Valley, San Gabriel, Upland, Woodland Hills, Chatsworth, North Hollywood, Van Nuys, Burbank, Glendale, Pasadena, Santa Clarita, Palmdale, Thousand Oaks, Ventura, Camarillo, Newport Beach, Irvine, Anaheim, Brea, Northern California, San Jose, San Francisco, Oakland, San Ramon, Napa, Sacramento, Nevada, Northern Nevada, Southern Nevada, Reno, Carson City, Tahoe, Las Vegas.