sales@deal-studio.com
(800) 239-5085
Schedule a Demo
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
    • Brand Development
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
  • Contact Us
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
    • Brand Development
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
  • Contact Us
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
    • Brand Development
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
  • Contact Us
  • Home
  • Platform
    • Industry Websites
    • Professional Content
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
  • Marketing
    • Branding & Design
    • Digital Marketing
    • CBR Design
    • Social Media Graphics
    • Company Newsletters
    • Email Campaigns
    • Brand Development
  • Insights
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
  • Contact Us
Blog
Home Seller Articles Is Your Deal Really Going to be Successful?
Seller Articles

Is Your Deal Really Going to be Successful?

Deal Studio April 26, 2023 0 Comments
Business Partnership Meeting Concept. Image Business People Hand

If you’re selling your business and things are looking positive with your buyer, you might be tempted to start resting easy. If you have a signed letter of intent, you might be even more tempted to think that things are pretty settled. However, the fact of the matter is that much can be uncovered during the due diligence process, and that is often when deals start to fall apart. Due diligence is an essential step that protects buyers, and sellers should be well-prepared to have things in good shape far in advance. Let’s take a closer look at some areas where a deal can potentially go awry. 

Products and Equipment 

When the sale involves a business that handles manufacturing, equipment is carefully evaluated during due diligence. Buyers will be thinking about any potential environmental issues that could affect the business. If you’re selling a business and have loose ends with your equipment or facility, this should be handled in advance if possible. 

Buyers will also be looking at the various product lines and inventory. They will be considering how the sales are spread among the product lines. For example, if one product makes up the majority of sales, that can raise red flags in the mind of a buyer. They will also think about supplies and how likely they are to be stable once the business switches hands. 

Buyers will want to look at breakdowns of customers so they can consider the company’s market share and also where the sales are coming from. Similarly, to only having one product, if a business only has one or two key buyers, that can be a source of concern for buyers. 

Intangible Assets

When you are selling a business, your buyers will also be thinking about the assets like intellectual property. Will all trademarks, patents and copyrights be transferred during the sale? If not, it can be a big source of concern for buyers. 

Buyers will also consider the state of the human resources department. Sellers should be aware that buyers will be typically looking for established staff members who are unlikely to leave. This is another area where sellers have the opportunity to prepare in advance to achieve optimal results. 

Sales Issues

Your prospective buyer will want to carefully examine accounts receivable. So if you have bad debt, you might want to sort out these kinds of issues before the due diligence phase. They will also want to have a firm understanding of everything that is included in the sale. Oftentimes during due diligence, a buyer finds out that equipment or patents are not included with the sale, and it quickly derails the deal. 

If you’re selling a business, you’ll want to put yourself in the buyer’s shoes and consider what you would want to see if you were buying a business. Anything that you can do in advance to improve your workforce, equipment, premises, and financial records is highly recommended.  The goal is to have a smooth transition for the buyer, and anything that could stand in the way of that taking place should be analyzed and improved if possible. When you work with a business broker or M&A advisor to sell your business, you will have an expert in your corner to help sort out the details.

Copyright: Business Brokerage Press, Inc.

Worawee/BigStock.com

8
632 Views
When Should Sellers Proceed with Caution?PrevWhen Should Sellers Proceed with Caution?April 19, 2023
Understanding Corporate Social Responsibility (CSR)May 10, 2023Understanding Corporate Social Responsibility (CSR)Next

Related Posts

Seller Articles

“Red Flags” in the Sunset

Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red...

Deal Studio March 22, 2016
Seller Articles

10 Tips for a Successful Sale

1.Sellers should find out the loan value of the fixtures, equipment and machinery...

Deal Studio February 17, 2016
Recent Posts
  • What Serious Buyers Look For June 7, 2023
  • The Benefits of an Advisory Council May 31, 2023
  • Cultivating Your Brand Strategy May 24, 2023
  • An Overview of Term Sheets May 19, 2023
  • Understanding Corporate Social Responsibility (CSR) May 10, 2023
Categories
  • Blog 22
  • Buyer Articles 105
  • Buyer FAQ 14
  • Buying a Business 33
  • Content 1
  • Financing the Deal 7
  • General Business Brokerage 9
  • Marketing 6
  • Marketing for Business Brokers 1
  • Promotion 1
  • Seller Articles 303
  • Seller FAQ 35
  • Selling a Business 193
  • Uncategorized 2
  • Using a Professional 6
  • Valuation 14
  • Workflows 1

Automate, accelerate and elevate your deal making
Email sales@deal-studio.com
Phone (800) 239-5085
Request Media Kit
View Demo Site
Platform
» Industry Websites
» Professional Content
» Lead Capture Tools
» Sales CRM
» Deal Management
» Integrated Workflows
Recent News
  • What Serious Buyers Look For
    June 7, 2023
  • The Benefits of an Advisory Council
    May 31, 2023
  • Cultivating Your Brand Strategy
    May 24, 2023
Newsletter

Terms of use | Privacy Policy

© Copyright 2023 Business Brokerage Press, Inc. All Rights Reserved.