What makes a business sales deal close?

What makes a business sales deal close?

There have been a lot of instances where businesses for sale fail to make the cut at the fag end of a deal. Though the reasons can be aplenty—some absolutely beyond one’s control (which is outside of the scope of the blog), let’s discuss the triggers that enable a business sales deal to click.

Buyer and seller are on the same page:

If you look at some of the successful businesses for sale transactions, there’s an overwhelming evidence of buyer and seller being on the same page right from the start of process. And where there have been loose ends, both the buyer and seller seemed to have tied or cleaned them up with a clear-cut agreement by adding specific details to the plan. This also implies that the seller may have already treated all the doubts that the buyer would have raised before closing the deal or pre-order. Again, these concerns whatever should be dealt with promptly to ensure both the buyer as well as the seller is on the same line of thought without any deviation.

Never jump the gun:

As the old adage goes, “They also serve who only stand and wait,” business trading and ownership transfer often requires patience, and quite a lot of it. Both the buyer and seller should never jump the gun for a quick one. Businesses are built for more reasons than just speed. If any business dealing involves external consultants, the buyer and the seller must ensure they stick to the scheduled closing date and work within the schedule. External advisors and consultants should help the trading parties to understand the technicalities and sensitivities stipulated in the agreement.

No surprises please!

Most businesses fail because of a lack of transparency between the two parties involved in transaction. No stone should be left unturned in the business agreement. When there’s lack of transparency, there can be surprises at large which can disturb the very structure of an agreement. The seemingly not-so positive aspects of the agreement should be revealed on the onset to avoid misunderstanding during the negotiation phase. For example, the seller needs to consult with his or her accountant about any tax implication prior to the trading process. The same holds true for the buyer.

To conclude, though business buy/sell process is never going to be easy, a win-win situation can only be achieved when the chemistry between the buyer and seller works like a charm.

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