I recently represented a buyer of a consulting firm. The target firm was run by two owners who were active in the business. As the deal went along, the owners became less and less active.
This sent the wrong message to my client, the buyer:
He started worrying that the owners wouldn’t be involved after the closing, which was a key part of the deal.
He got the feeling that the owners just wanted to unload.
Only a few issues came up during the due diligence process, but they were not resolved timely.
My client got frustrated and terminated the negotiation.
This is a key lesson for business sellers: a deal is not done until it is signed and closed. To get a business sold, the seller must stay engaged until the deal is done.
If you're planning a huge party because you just hired a business broker to handle the sale of the business, don't. It's not time to relax just yet. The broker can't handle everything, because the broker doesn't know as much about your business as you do.