Why Do Deals Sometimes Go Awry?

It’s important to be aware not only about what makes deals successful for also about some of the most common reasons why deals fall through. After all, if you know what can derail a deal, you’ll know what to avoid. If you’re looking to sell a business in Pittsburgh, PA, New Jersey, New York, Connecticut, Maine, Massachusetts, Vermont or the rest of the state of Pennsylvania, you’ll want to think about these kinds of issues ahead of time.

Uncommitted Buyers or Sellers

In some cases, sellers are just testing the waters. They may not be very invested in selling, but they are trying to get a sense for the market and what a potential selling price might be. Perhaps they are not very attached to the idea of selling because they simply lack a valid reason to sell. Along similar lines, buyers can be window shopping but not fully invested in purchasing a business. Both of these situations can quickly cause a potential deal to end before it even gets off the ground.

Unrealistic Expectations

In other cases, sellers can be completely unrealistic about the fair market price for their business. This should come as no surprise. After all, most sellers have invested years of time and energy into their businesses, so they have high hopes that they will be financially rewarded. However, in some cases, their expectations don’t match up with reality.

Along similar lines, in some situations sellers do not quite realize the legal or financial implications of selling. For example, they might have not yet talked to their accountant about tax issues involved. When you sign up for business brokerage services in Pittsburgh or any city, it’s a good idea not only to talk to your business broker, but also to your attorney and accountant.

Rigidity on Financial Arrangements

There are other issues too that can detail a sale. Oftentimes, buyers will want to utilize seller financing, yet a seller is unwilling to agree to that kind of payment structure. It’s important to be open minded about the options available that will benefit all parties involved.

Problems with the Business Itself

It should come as no surprise that a deal will fall through if there are legitimate issues with a business that a seller is not upfront about. For example, perhaps there are environmental issues or some other serious concern that the seller has not revealed. When you’re selling a business, it’s a good idea to bring up any uncertainties with your business broker. Through that means, together you and your broker can then make the best decisions in order to properly deal with that issue.

When you’re just testing the waters or you’re ready to buy or sell a business in Pittsburgh, PA, New Jersey, New York, Connecticut, Maine, Massachusetts, Vermont or the rest of the state of Pennsylvania, feel free to reach out to Inbar Group. We’re happy to answer any questions you might have about how we maximize the success rates of deals for our clients. We offer business brokerage services in Pittsburgh and the rest of Pennsylvania as well as New Jersey, New York, Connecticut, Maine, Massachusetts, and Vermont.