Why deals do not close
Steve Sink is the founder and managing partner of Phoenix Affiliates Ltd.
Any number of things can derail a deal to buy or sell a business. Here are a few of them.
· Do not have a valid reason for selling
· Just testing the waters.
· Unrealistic sale price
· Lack of honesty.
· Lack of or poor records.
· Do not understand the tax consequences or legal issues.
· Will not provide seller financing
· The fear of ownership is greater than the urge for ownership
· Do not understand the buying process
· Are not willing to do the work required of an owner
· Influence of factors opposed to the purchase of a business
· Lack of capital
· No relative management expertise
· Lack of experienced advisors
· Due diligence discovery problems
· Bank or SBA requirement for seller financing
· Advisors with little or no experience in transactions
· Seller cannot provide the required documents
· Government regulations
· Overly aggressive advice by advisors resulting in roadblocks
Certified Business Intermediary
Merger and Acquisition Master Intermediary