Lucido Global Business Brokers

Lucido Global Business Brokers

Adding Value, Creating Wealth

  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us

The Top Ten Ways to Avoid Wrecking a Deal

By Sam Mohlenhoff Apr 24

Finalizing a deal is usually a complex process, and there is a good deal of room for error, misunderstandings, miscalculations, and good old-fashioned wild cards.  That is why it is critical to carefully think through the deal process well in advance.  In this article, we’re going to explore the top ten steps you can take to avoid wrecking a good deal.

  1. Confidentiality – At the top of our “how not to wreck a deal list” is confidentiality.  It is vital that everyone involved in the deal takes steps to avoid a breach.  Experienced business brokers are experts at maintaining confidentiality.
  2. Flexibility  – The second tip on our list is to be flexible. A lack of flexibility can absolutely destroy a deal. You shouldn’t go into a deal expecting to have all of your terms met.
  3. Be Open to Negotiations – Just as it is critical to be flexible, it is also important to embrace the concept of negotiation.  Sellers are used to being their own bosses, but when it comes to successfully selling a business, no factor is quite as important as a willingness to negotiate.
  4. Advance Preparation – Next on our list of musts to avoid wrecking a deal is to prepare for the sale well in advance.  Sellers will want to make sure that they have several years of records as well as legal and accounting documentation ready and well-prepared.  You can be 100% certain that any serious buyer will want to see your records and take a look at your financials.
  5. A Reasonable Selling Price – An inflated price will decrease the number of buyers that take a serious look at a business.  Additionally, an unreasonable price may make a seller look uninformed.  Business brokers and M&A advisors are experts at handling valuations.  One of the single best ways to boost your chances of finalizing a sale is to establish a fair and justifiable price for your business.
  6. Maintain Operations – Far too often sellers lose track of the day-to-day operations once their business goes on the market.  It is absolutely vital that sellers continue operating their business as though it may never sell.  The bottom line is that it can take months, or even years to sell.  The last thing any seller wants is for their business to lose value when they are in the process of trying to sell.
  7. Keep up the Momentum – A lack of momentum can kill a deal.  Working with a business broker or M&A advisor is an easy way to make sure you maintain momentum throughout the process.
  8. Consider Your Buyer’s Needs – Serious buyers will need a variety of information from sellers in order to obtain financing.  You can expect buyers to need appraisals of assets, information on environmental regulations, and more.  Sellers should have this kind of key information ready and waiting.
  9. Encourage Competition – Another great way to avoid wrecking a deal is to achieve leverage via buyer competition.  In general, it is a good idea to create a competitive situation – one in which prospective buyers know that there is more than one interested party.  Brokerage industry professionals understand the delicacies of presenting this information.
  10.  Seller Participation – Finally, sellers must stay involved in the entire process, and that includes being willing to assist during the transition. Showing a willingness to help during the transition period will help to foster goodwill and trust.

There are many reasons why a deal could potentially fall apart.  You may not be able to control every single variable, but by following the ten key tips outlined in this article, you will be well on your way to increasing your chances of successfully completing a deal.

Copyright: Business Brokerage Press, Inc.

Shutter B/BigStock.com

The post The Top Ten Ways to Avoid Wrecking a Deal appeared first on Deal Studio – Automate, accelerate and elevate your deal making.

Categories: Seller Articles

Prev
Next

Featured Businesses

Subscribe to our Newsletter

No worries, your information is safe with us. We hate spam too!

From Our Blog

5 Ways that Sellers Can Focus on the Positives

January 21, 2023

When you are looking to sell, always focus on the positive aspects of your business. Many business … Read More »

The Top 3 Reasons Why Deals Fall Through

January 14, 2023

No one likes to think about the deals that didn’t succeed. However, the fact of the matter is that … Read More »

The Four Essential Stages of a Closing

January 7, 2023

When it comes to reaching a successful closing, there are four important stages to keep in mind. In … Read More »

Take Inventory of Your Company

December 17, 2022

Most business owners don’t give a second thought to the idea of going to the doctor for an annual … Read More »

5 Elements for Buyers to Investigate

November 19, 2022

When you’re in the process of buying a business, it’s important to stay logical. No matter how good … Read More »

Defending Your Asking Price

November 12, 2022

When you’re putting your business on the market, one of the top considerations is your asking price. … Read More »

Global Business Brokers

Contact Us

Lucido Global Business Brokers
Keller Williams Coral Gables
550 Biltmore Way PH II A-B
Coral Gables, FL 33134
Office (305) 662-7325
Direct (954) 913-5464
rod@globalbusinessbrokers.net

Adding Value, Creating Wealth

  • 5 Ways that Sellers Can Focus on the Positives
  • The Top 3 Reasons Why Deals Fall Through
  • The Four Essential Stages of a Closing
  • Take Inventory of Your Company
  • 5 Elements for Buyers to Investigate

Join Our Team

Copyright © 2023 Lucido Global Business Brokers
MENU
  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us