It may come to you as a surprise that many would-be business buyers don’t actually end up buying the business. In as many as about 14 out of 15 cases, the uncertainty resulting from facing a big and important decision weighed down on buyers and they ultimately changed their heart. For this reason, it is important for sellers to feel into the situation of a buyer, especially if they built their businesses from scratch.
A typical cause of uncertainty is the shift in a buyer’s life when they move from employment to owning a business. This departure from the comfort zone coupled with the initial investment, acquiring loans and future financial commitments can result in putting a lot of pressure on the potential buyer – pressure and challenges they have to deal with on their own.
Becoming a business owner is much like sailing out to sea where you no longer have the safety of the shore. The necessary leap of faith has to be made in addition to taking care of all family and personal responsibilities. It is also very time consuming, especially for a new business owner.
All in all, all these factors have to be considered carefully before deciding for going down the route of business ownership. Even though it can be frustrating for sellers to put up with withdrawing buyers, they should put themselves in their position and perhaps anticipate future challenges. Having a business broker assist with the transaction can help determine the relative pros and cons of the deal and prevent the negotiations from going further that necessary.