Not Really Ready to Sell
In an earlier chapter, we discussed the 'switch' that needs to go off inside of a Seller, letting them know it is time to move on. This is just an analogy but, it demonstrates the idea that the Seller has to have some level of really wanting to sell their business. If they are just lukewarm, they are unlikely to make the compromises necessary and put up with the multi-month headache that is generally the business sale process. As the process itself is such an investment for both Buyer and Seller, it is important that the Seller be sure early on that this is something they want to do.
Unreasonable Financial Expectations
The Seller has a right to want whatever they want for their business, no one should judge that as it is their asset. However, this may be more than is reasonably possible for any Buyer and also any lending institution. If the Seller’s expectations are above what will work from a valuation, cash flow and lending perspective, the transaction will almost certainly fail when this is discovered. Again, as there is so much investment in a business sale transaction by both the Buyer and Seller, it is very important to evaluate this as early as possible.
Lack of Timely Follow-Up
Business sale transactions take a lot of focus from both Buyer and Seller who are often paying outside professionals to be part of the process. There is also just a natural pace and a certain energy level everyone devotes to it with an expectation of completing it in a reasonable time period. If one side is very slow on responses, it can greatly affect the costs on the other side as well as focus. At some point, the other side may just
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