WHY DEALS FAIL TO CLOSE — SOME RED FLAGS

There are dozens, probably hundreds, of reasons why deals fail to close. Everything can be fine — price and terms agreed upon, a letter of intent signed — and then everything starts to unravel. There is an old saying that “the devil is in the details.”

Here are just a few of the devils:

For Sellers : Having unrealistic expectations Seller’s remorse – having second thoughts about selling the business Being inflexible on price and terms or insisting on all cash Not paying attention and/or not cooperating with intermediaries and other professionals

involved in the selling process Allowing the company’s sales and earnings to deteriorate during the selling process The seller coming across as a one-man band

For Buyers : Not having the capital or financial resources to do the deal Losing patience prior to or during the acquisition process Understanding that the “near perfect” fit will bring a premium price If inexperienced in the deal making process, failing to lean on experienced advisors

Buyers and sellers should understand and accept the fact that the easy deals of the 90s are over – at least for now. Deals are more difficult these days. Putting your business for sale also requires a plan. A qualified Mergers and Acquisitions Team works for you to determine the fair market value of your business.

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