Superstitions and Deal Killers
Beware the Ides of March.
Watch out, it’s a Full Moon.
Friday the 13th is coming!
Is it just us, or does this week seem particularly well-suited for the superstitious? Along with the above, we’ve been hit with the annual “Spring Forward” introduction to Daylight Saving Time, which is typically accompanied by sluggishness and extra coffee for the business community as we all cope with losing an hour of sleep.
We’ve seen superstitions kill a deal or two in our time, such as the Buyer who considered it a “bad omen” that a business had been incorporated on 6/6/2006.
With this in mind, we’re sharing a list of the top “Deal Killers” that can break a good transaction even after the Buyer and Seller have agreed to a price, deal structure and closing date.
Moving the Goalposts
That purchase price looked good when the Buyer first presented it, but what if the number… were bigger? Asking to increase the price after a Letter of Intent has been signed is hard to justify to a buyer.
Celebrating Before Running Through the Finish Line
The deal isn’t done until it’s done. A month before the closing date isn’t the time for a business owner to take a two-week vacation – the business needs to continue to perform at the same levels it was prior to due diligence, or the Buyer and lender may not be able to make the deal work.
Inaction Causing Delay
The reason The Firm Advisors has a higher closing rate than the national average is because we keep our deals on track. Reasonable due diligence requests – such as inventory counts, up-to-date profit and loss statements or A/R agings – should be responded to promptly.
A business’s financials should be easily explainable to a Buyer or Lender. For instance, a retail-based company should be logging all its income, including cash.
Death of Partner, Owner or Spouse
These are terribly sad situations for all involved. The death of an associated party can delay the sale of a business for months or years if there are no predetermined steps to address how the normal course of business should proceed.
Keep the above in mind when signing a Letter of Intent – and maybe throw some salt over your shoulder for good measure.
- How to Rest - The Secret to Success
- 3 Ways to Find Hidden Treasures in Your Team
- 3 Ways to Hire Top Talent for Your Open Positions
- Less is More: Growing Your Business
- Reaching for the Mountains: Setting Obtainable Goals
- Stop Waiting and Start Now
- How to Increase Workplace Productivity
- Growth Mindset: Essential in the Workplace
- 3 Ways to Tackle the Summer as a Small Business
- 4 Free Resources for Small Businesses
- Embracing the Unknown in Business
- Setting Healthy Expectations in the Workplace
- Why Effective Communication is Essential in Business
- Remote Work Here to Stay
- Learning From General Mills and Shrimp Tails
- 11 Years of Omaha Magazine’s “Best of B2B”
- Due Diligence: Preparation is Key
- Your Business as a Machine: Exit Planning Is Not Just for Exiting
- 10 Industries That Will See Post-Pandemic Profits
- Self-Care in a Pandemic
- Asset Sale vs. Stock Sale
- 5 Most Influential Women in the US
- Advertising Industry Outlook – Adapting Strategies
- How Important Is Due Diligence?
- 6 Best Christmas Movies of All Time
- Construction Industry Outlook – Remodeling & Renovation
- 4 Upcoming Business Trends of 2021
- Industries Booming During COVID-19
- What Are You Thankful For?
- Why it Makes Sense to Carry as a Seller
- Let's Talk About Pets
- What Exactly Are the Benefits of an SBA Loan?
- 2020 Industry Highs and Lows
- What the "Big Buyers" Want
- What’s an earnout, and why does Ryan Reynolds have one?
- M&A Advisor or Business Broker?
- How to Sell a Business in 7 Easy* Steps
- The Firm Advisors: #1 in the World -- Again!
- Documentation is Key During This Time
- Small Business Debt Relief Program
- Work On Your Small Business (While You Aren't Working In It)
- Meet the Listing: Body Shop w/ Towing & Auto Repair
- Choosing Your Investments: Stock Market vs. Business Purchase
- Video: Deal Education
- Industry Spotlight: Advertising and Marketing
- Meet the Team: The Firm Advisors Office Tour
- Securing Your Business Against Ransomware
- M&A: What's an M, and what's an A?
- Location, Location, Relocation
- $20M in One Month
- Pet Care: A Recession-Proof Industry
- The Firm Named to BBB Honor Roll
- Firm Family Christmas
- Firmgiving 2019
- Cortney Sells on IBBA's Podcast
- The Firm Makes Inc. 5000
- M&A: The Industry Defying Gravity
- Have You Met Makayla?
- Dr. Lemberg's Pathway to Retirement
- Steven Makes His Mark in M&A
- Hot Off the Press - June 2019 Magazine
- All Good Things Take Time
- The Firm June Magazine Release Celebration
- The Firm Feels Good Doing Good
- Corner Kick Spoils our Swan
- Opportunity of the Week: A Business That Brightens Children’s Futures
- Q&A With Cortney: Stock Sale Versus Asset Sale
- The Ins and Outs of Seller Financing
- Preparing for the Perfect Retirement
- The Firm Is Breaking Industry Records & Poised for Growth in 2019
- Simply the Best
- Competitor Analysis, Opportunities Listed
- Dentist to Dreamer - Hard Work Pays Off!
- Kansas City Tech Company Useagility Sells to First Tek
- 8th Year as Omaha's Best Business Brokerage
- Sellers: Why You Should Finance Your Buyers
- Summer Intern 2017 - Ameya Shelby
- Industry Forecast: Mind the Generational Gap
- 8 Things We Wish Every Business Buyer Knew Before Calling Us
- Selling Your Business: Getting a Proper Business Valuation
- Asset Sales or Stock Sales: Determining the Best for Your Business Transaction
- Why (and How) Business Owners Are Selling in 2017
- The Law of 3's - Choosing the Right Kind of Broker
- A Mutually Beneficial Relationship
- Reaching Out is Key
- Confidential Business Reviews
- A Change of Pace to Business Ownership
- Confidentiality is at the Core of Business
- Moving into the Boardroom
- Buying a Business vs. Starting Your Own
- Bringing Buyers and Sellers Together is Just the Beginning
- Client Interfacing in the Digital Age
- Four Questions Every Buyer Should Ask
- The Firm Outpaces Transaction Totals from Previous Two Years
- Faces of Omaha 2016: Face of Business Brokerages
- The Firm Business Brokerage Set to Double Sales within Seller's Market - MBJ 2014