in the process to maximise the chances of getting to the closing table in a timely manner.
Dishonesty
The Seller is going to receive what could be £MMs of pounds for their business and rely on the future cash flows generated by the customer base and serviced by the employees and processes of the business to make any deferred payments as well as maintain their legacy. They will usually need to have total confidence in the Buyer and their integrity in order to conclude a transaction. If they feel that the Buyer or someone working on the Buyer’s team is being dishonest, this confidence can evaporate as well as their willingness to do the transaction. Our advice is to be honest in everything, as it builds trust. Also, to have the idea that over many months everything will be found out anyway, so there is no use being dishonest and better to deal with the truth. People respect each other that way and trust and respect are what get deals over the line.
Not Building Trust with the Buyer and Seller
This is related to the above point about dishonesty. Generally, the Seller is going to take many things on faith to gain the confidence necessary to be willing to relinquish control of their business to the Buyer. He will need to build trust in the Buyer’s business acumen, values, business plan and resources to reach this level of confidence. We always say that trust is what closes deals as there are always 2 or 3 things that come at the end that require both parties to compromise and take leaps of faith…the amount of trust that has been built during the process is directly related to how willing they will be to do this.
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