Sellers
- Not having a valid reason for selling
- Testing the waters to check the market and price
- Being completely unrealistic about price and market conditions
- Not being honest about their business or situation
- Not disclosing all owners or that they are not in agreement
- Failing to check with outside advisors about implications of selling
- Not preparing to accept seller financing or now unwilling to accept it
Buyers
- Don’t have a clear vision or goal for what they want to accomplish with the business.
- Aren’t able to realistically assess their capabilities
- Expect too much out of the deal- oftentimes they aren’t willing to put in the work post-sale and it becomes difficult to manage their expectations.
- Are influenced by someone else (a spouse for example) who is not on board with the idea of buying a business- this can often lead to tension and difficulties down the line.