I had an interesting conversation with a client of mine who’s been frustrated while dealing with a business seller who isn’t giving him the necessary information. Let me break down the situation and offer insights on how buyers can handle unresponsive sellers. https://youtu.be/BwNY7cpSZhI
Understanding the Situation
My client is interested in purchasing a business, and he has been in discussions with the seller. However, the seller isn’t represented by a broker and is handling the process independently. The buyer requested financial statements and other documents—but since then, nothing has happened. No information has been provided, and my client is left waiting. So what’s going on?
What’s on the Seller’s Mind?
It’s important to understand why someone sells a small business. In many cases, owner-managed businesses are deeply connected to their owners’ personal lives. The top reasons people sell businesses include:
Boredom and burnout
Divorce
Poor health
Relocation
Retirement
Many of these reasons are emotionally driven. A seller may initially feel compelled to sell, but as time passes, the urgency diminishes. Additionally, if the business is profitable, delaying the sale means continued income, reducing the incentive to act quickly.
Furthermore, selling a business isn’t their primary job—running it is. This means responding to buyers often takes a backseat to daily operations. External factors like tax season or vacation schedules can also slow things down.
What Buyers Should Do in This Situation
If you’re a buyer dealing with an unresponsive seller, here are some strategies to handle the situation effectively:
Avoid excessive follow-ups – If you call weekly, the seller might perceive you as overly eager, weakening your negotiating position. Instead, switch to a monthly email reminder.
Express interest in other opportunities – Let the seller know you’re looking at multiple businesses. This creates a sense of urgency on their end without making you seem desperate.
Be patient – The process can take months, sometimes over a year, to get all the necessary documentation. Rushing or showing frustration won’t help.
Stay logical – It’s easy to get “buyer fever” and imagine yourself owning the business before you even have the financials. Take a step back and analyze everything objectively.
For Sellers: How to Avoid This Mistake
If you’re selling a business, the best way to avoid frustrating potential buyers is to be prepared before listing it. You should:
Have financial statements and necessary documents ready.
Be responsive to buyers’ inquiries.
Understand that delaying responses can lead to lost opportunities.
If you need guidance on selling your business the right way, visit howtosellmyownbusiness.com.
Resources for Buyers
For buyers looking to analyze deals and negotiate effectively, check out businessbuyeradvantage.com.
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