Potential Stumbling Blocks During the Sale Process
- Time (or inability) to supply additional information needed by purchasers
- Historical margins are compressed
- Sales growth slows
- Operating expenses move upward
- Profit projections are not met
- Departure or health issue of key personnel
- Legal issue arises
- Accounting issues are not resolved
- Tax issue cloud unresolved
- Environmental issues appear
- Stiffer competition emerges
- Concentration of sales becomes too risky
- Immediate need to replace significant equipment
- Hazard such as fire, flood etc. disruption of the business
- Change in industry dynamics (e.g. imports or online shopping)
- Raw material supply glitch
“Issues such as those above can arise during the sale process so it is critical that an experienced business broker consultant is there to draw on their many prior transactions that may have found such a glitch, yet closed successfully.” Emmett Barnes. President
