When is a deal in a business-for-sale transaction not going to be completed?
A broker working with a multi-million dollar transaction has heard about six times in the due diligence phase “I am out of here and not going through with the transaction.” His patience, continued listening to the clients, and pointing out the errors in the thought process has continued to bring the parties back to the table.
That particular deal is not yet closed but there is promise.
One I recently worked on did not close. I too listened and decided that the buyer’s reluctance was such that getting to close was likely impossible and likely not right for the business anyway.
As a buyer, you should be nervous and questioning. It is important to look closely.
As a seller, having the right deal is important and being a bit nervous is important for you as well.
The broker has the responsibility to bring the parties to the table with reasonableness, point out the flaws in thinking and opportunities if you go forward. Of course the business is not perfect. Just like all of life, perfect is elusive. Each side should listen, try to be calm, be reasonably flexible and look for the right avenue to the right conclusion.