Why Deals Don’t Close

Sellers

  • Do not have a valid reason for selling
  • Are testing the waters to check the market and the price
  • Overprice their business
  • Do not disclose all information. The reason they might want to sell is that the business does not prosper, faces environmental problems or is challenged by new competitors.
  • Failed to consider financial, tax or legal implications of selling their business
  • Are unprepared to accept seller financing or now unwilling to accept it

Buyers

  • Do not have a valid reason to buy a business; their fear overcomes desire
  • Have unrealistic expectations regarding price, the business buying process, and/or small business in general
  • Are not willing to do the work necessary to own and operate a small business
  • Have internal opposition (spouse or someone else) who is against the purchase of a business