If you’re preparing to sell your business, be on high alert for warning signs that could potentially derail the deal. Time is of the essence when it comes to finalizing your deal, so why spend time negotiating with a buyer who is either not really interested or is simply not qualified to buy? Let’s take a look at some of the top buyer warning signs.
- Lack of Buyer Experience
When it comes to individual buyers, determine if they have experience in your industry. If a prospective buyer is not knowledgeable about your business, they might initially seem very excited but then get cold feet once they dive in and learn more about the industry.
The same can be said for a potential buyer who has never purchased a business before. If you’re dealing with a “newbie,” you’ll want to feel confident that this individual understands the factors involved in buying a business before you dedicate too much time to their deal. After all, the process of buying a business can be long and complicated. Inexperienced buyers might find they no longer want to continue progressing once they get a better sense of what is involved.
- Undisclosed Financial Information
Along similar lines, you’ll want to work with a buyer who is open about their financials. If you are denied access to financial statements, you will have no way to verify that this buyer is actually equipped to purchase your business.