Sometimes the purchase/sale process falls apart. There are reasons this
happens, and, once understood, many potential deal-breakers can either be
avoided or handled beforehand.
Other than problems beyond anyone's control, here are some important
reasons why deals fall apart:
The Seller Fails To Reveal Problems
When a seller is not up-front about problems with the business, the
problems don't just go away. They are bound to turn up later. When the buyer
eventually finds out, they are likely to get cold feet and cancel the
deal...since nobody likes that kind of unpleasant surprise. We try to have
sellers be as open about the minuses of their business as they are about the
pluses. JSBS can handle most problems...if we know about them at the start of
the selling process.
Either the Buyer and/or the Seller Grow Impatient
During the course of the selling process, it's easy for impatience to set
in. Buyers continue to request additional kinds of information, in quantity,
and a seller may grow weary of it all. We get both sides to understand that
the sale process takes time, and we are there to keep the deal moving along.
The Seller Doesn't Really Want to Sell
In some instances, the seller does not really want to sell the business.
The idea sounded good at the outset, but as things come down to the wire, the
fire to sell sometimes goes out. Selling a business has many emotional
ramifications; a business often represents the seller's life work. We try to
get prospective sellers to make a firm decision to sell before going to market
with the business. If there are doubts, we feel that they should be resolved,
or the seller should make a decision not to proceed with the process. Some
sellers enter the marketplace just to test the waters; to see if they could
get their "price" should they ever get really serious. We try to
head that off right at the beginning so as not to waste everyone's time and
The Buyer Doesn't Really Want to Buy or Doesn't Have the Financial Capability
Buyers can enter the purchase process full of excitement and optimism, and
then begin to drag their feet as they draw closer to the "altar."
The reality of the purchase price sinks in and they lose their nerve, or
they realize that they don't have the wherewithal to take the deal to
conclusion. We try to eliminate this possibility when we qualify the buyer.