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Buyers > Tools > Anxiety

Sources of Anxiety and Additional Expense

It is important for you, the buyer, to be aware of the issues that will cause great angst and sometimes additional expense when you go to buy a business.

Even after the tentative agreement has been made, there are several issues that could cause the deal to fall apart. Here are some of those problems and suggestions on how to avoid them.

-  Problems are not revealed. To avoid: bring any issues to the table
   in the beginning. You will have a better chance of resolving them.

-  Second thoughts on the agreed upon price or buying/selling the
   business. To avoid: Make sure there is a business valuation
   methodology (not a gut feeling) behind the selling/offer price.

-  Impatience - the process is taking too long. To avoid: Make sure
   the seller has all the necessary information documents ready for
   due diligence.

-  Inability to reach an agreement. To avoid: Enlist the help of an
   experienced business broker who knows what to communicate early
   on in the process.

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