In the famous words of Yogi Berra, “it ain’t over till it’s over.” The same can be applied to business sales.
We’ve seen it many times before. After a long process, a business owner finally finds a buyer for their business, and they rejoice! They’ve finally secured a great deal, and they can relax. Then, at the last minute, the buyer backs out.
It’s a major let-down, but it happens more often than you’d think. When you’re selling a business, you need to be prepared for anything, and keep in mind that you aren’t finished until the company officially changes hands.
How to Prevent the Sale from Falling Through
There are many cases in which the buyer backing out at the last minute has nothing to do with you. But, there are some things you can do to reduce the risk.
In some cases, buyers back out because they do their due diligence and discover a negative aspect about the business that sours the deal, or maybe the bank lender sees something that makes them nervous. As long as your business has a strong cash flow and a bright future, the good news is that these types of situations can be avoided.
Three Ways to Make Your Business More Sellable
Selling a business is a lengthy process. If there are things you can do to make your business run more smoothly, it’s wise to take a few months to clean things up.
Here are three approaches to get you started.
- Get your staff in order. Make sure you have a team of trusted staff who can effectively run the business without you.
- Organize your paperwork. Any worthy buyer will want to see your paperwork (this isn’t the first time we’ve mentioned that). If you can show organized records that include a healthy cash flow, this can go a long way toward making the buyer feel comfortable.
- Keep up with changing technologies. Make sure your business practices are up-to-date with modern technology. Start with this list.
Most of the Time, It Has Nothing to do With the Business
However, sometimes the buyer walks away and it has nothing to do with the business. Personal situations with the buyer or his or her family could easily be the route of the issue. If that’s the case, all you need to do is jump back in the saddle! Your ideal buyer will come along soon enough. And if you’re looking for more tips, check out our complete list of methods for preparing your business for sale.
One way to take significant stress off of the sale is to enlist the help of a professional. The business brokers at The Bridlebrook Group have more than 30 years of experience selling businesses and will help you along every step of the way. Contact us to learn more!