Deals fall apart all the time. Some reasons are practical, others not. The reasons can basically be divided into four categories—those caused by the seller, those by the buyer, those by a third party, and ‘acts of fate,’ where the circumstances are beyond the control of an involved party.
Vancouver business brokers know full well how taxing a frenzied business transaction can be, and it can get even more frustrating when the deal collapses when it is so close to fruition. The good news is there are things you can do to prevent a deal from falling apart, so it pays to know the most common mistakes to make that lead to this result.
Regardless if you are a buyer or a seller, you need to keep delays to a minimum on your end. Have all the necessary paperwork ready, up-to-date and in order. If you’re the seller, you need to anticipate the paperwork that will be asked of you, such as tax returns, leases, financial statements, contracts, franchise agreements, etc. If it’s your first business sale, it will be wise for you to work with business broker for a speedy and efficient transaction.
You’re being inflexible
Being inflexible often only serves to push away interested parties. If a buyer or seller starts to feel that he’s the only one making compromises, he’ll more likely fold and shy away from the deal. Be prepared to make concessions when applicable. If the other party bends, then you should be ready to make adjustments as well.
The property has undeclared issues
The purchase or sale of a business is often a huge undertaking that involves a significant amount of assets, so mutual trust is an important ingredient for the transaction to push through. As a seller, you need to ensure the due diligence done by the buyer doesn’t yield any notable discrepancies that can kill the deal. Few buyers will proceed with a transaction when the opposite party has blatantly betrayed their trust.
Your Vancouver business brokers are aware of the reasons described above and know how to deal with them. Working with a trusted business broker allows for a smooth and stress-free brokering transaction.
Top 5 Reasons Business Deals Fall Apart, And How To Prevent It, EngineBuilderMag.com