Most business owners are unprepared for the enormous amount of time and effort that will be required to prepare their business for sale, successfully market their business to find the right buyer and negotiate the right deal, and then get that deal closed.
Even at the conclusion of a highly successful process, many sellers describe it as “like having two full time jobs.” And even with the assistance of an experienced M&A professional many sellers will experience “deal fatigue” at some point in the process. If not properly managed, deal fatigue can scuttle an otherwise very attractive deal.
Deal fatigue frequently occurs when the stress and strain of responding to all of the requests for information from all of the potential buyers — and then their due diligence advisors — descend upon the business owner whose staff is already fully burdened with the daily demands of running the business. All too often the tone of these requests make the seller feel like he/she is getting the third degree from a hostile and suspicious adversary, rather than a trusting investor/partner.
An experienced M&A intermediary can be immensely helpful in minimizing deal fatigue in several ways. First, in gathering and organizing most of the required information up front, the M&A advisor can anticipate and answer most of the commonly asked questions in the initial marketing phase. Next, by screening prospects so that only qualified buyers will ever meet the seller, we can minimize the seller’s frustration at being asked the same questions over and over again. By funneling all information request through the M&A advisor, we can remind the buyer that certain questions have already been asked and answered and that other questions should properly be asked after they’ve made an offer. Finally, by managing the process all the way through to closing, we can ensure that the seller always sees the light at the end of the tunnel.
If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a complimentary consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com
By: Mike Ertel, Transworld M&A Advisors