Hiring an advisory firm to buy a small business can backfire and cost you the deal.
I’ve seen this happen many times.
A buyer brings in advisors from a prestigious firm.
But instead of helping with the deal, they alienate the seller.
Why?
Because they don’t understand how to handle small business owners.
They rely on facts, numbers, and cold analysis.
That works for massive corporations.
But, it's a disaster for buying a small business where the owner is very emotional.
Small business owners aren't just making a financial transaction.
They're selling something they've poured their heart and soul into.
Their life, their identity, is wrapped up in the business.
When you send in a corporate team to handle the deal, you miss the emotional side.
The seller feels overlooked, unheard, and often offended.
What happens next?
He starts to resist the deal.
He starts to second-guess the decision to sell.
Before you know it, the process stalls or falls apart.
Spreadsheets alone won't persuade a small business owner.
They want to feel respected.
They want to ensure the buyer "understands" the business.
My perspective is that if you want to buy a small business, you must see things from the seller's perspective first.
The key to getting these deals done is slowing down and building trust.
For me, a great way to do that is to avoid bombarding the seller with corporate jargon.
Instead, I would walk them through the process, explaining each step in simple terms.
The goal is to address their concerns and build trust.
Buying a small business isn’t the same as a corporate acquisition.
And if you ignore that, no amount of financial expertise will save the deal.
If you want to learn how acquisitions can help you grow your business, let's talk.
Apply for a strategy session today to find out more about what is possible.
Comentarios