In part one of this two-part blog series, we went over some of the reasons why a business sale may not close successfully or otherwise fall through. While the goal of every business sale is to be completed without any hassle or issue to any party involved, the reality is that this isn't always possible - and knowing some of the possible pitfalls here can be helpful for avoiding them.
At Utah Business Consultants, we've spent years helping clients in Salt Lake City and nearby areas of Utah with every business sale need they may have, including business valuation, succession planning and more. While part one of our series went over common sale fall-through situations that are caused by buyers and sellers themselves, today's part two will look at a couple other categories of business sale blockers to be aware of - and how to steer clear of them wherever possible.
There are a few third parties who may be involved in a business sale, and in some cases, these parties may cause issues that lead to a sale falling through. One such example is when the buyer or seller of a business has become involved in tax disputes or other legal problems.
In many situations, third-party issues like these can be avoided if both the buyer and seller do their due diligence before entering into any agreements. It's important to carefully research all parties involved in the sale and ensure that they are not facing any legal challenges that could affect the sale. If such issues do arise, it's crucial for both parties to work together to find a solution.
One common third-party issue to be aware of in many sales is the presence of a landlord. In cases where leases are involved, the landlord’s approval may be necessary for a successful sale to take place. Make sure to communicate with all relevant parties and ensure that any necessary approvals are obtained before moving forward.
Finally, there are a few financial issues that can come up during a business sale and cause it to fall through. Issues with financing are one of the most common examples here - sometimes, buyers may struggle to secure the necessary funds for purchase, or they may demand certain guarantees from the seller that cannot be met.
In these situations, it's important for both parties to be transparent and communicative with each other. If a buyer is struggling to secure financing, the seller may be able to offer alternative solutions or agree upon a payment plan that works for both parties. Additionally, proper financial planning and preparation before entering into a sale agreement can help prevent these issues from arising in the first place.
By being aware of these possible third-party and financial blockers, buyers and sellers can increase their chances of a successful business sale. And, as always, the experienced team at Utah Business Consultants is here to help guide you through every step of the process and mitigate any potential issues that may arise. Contact us today to learn more about our comprehensive services!