We spend a lot of time meeting with business owners, and while most interactions are generally positive, there are a few that leave us with a feeling that something isn’t quite right.

 If you’re reading this, I’ll assume you’re serious about selling, and therefore want to optimise to get a deal across the line. Our advice? Be open, honest, and stay away from the behaviours below.  

• You’re unresponsive: If you subscribe to the “treat them mean, keep them keen” school of negotiation tactics, please don’t bother. Transactions are complicated enough at the best of times. If buyers can’t get candid, quick responses, they’ll move on. Owners and hardworking intermediaries who are focused on getting a deal done will call back within 24 hours.

• You exaggerate: You want to convey your business in the best possible light to get the best deal. But here’s the rub: don’t stretch the truth to the point where it becomes an intentional or unintentional lie. The right buyer will see through any exaggerations and will also reward you for being realistic. If you have to ‘pull one over their eyes’ to get a sale done, you’ve probably sold to the wrong buyer.

• Everything’s a trade secret: The NDA has been signed and you’ve checked the credentials. Sharing basic information like revenue and profitability shouldn’t be a secret. A buyer may be turned away quickly because you don’t meet their criteria, but better to be transparent and move on to interested buyers. Likewise, majority of buyers value business based its financial performance. You’re not getting a number until you start sharing.

• You don’t answer the questions: Back and forth due diligence is exhausting. The best way to move through it is to look for what the buyer is trying to understand in their questions. Can’t produce a specific report they asked for? No worries, but tell them why and give them another way to get the answer to their question. This not only limits the back and forth, but also facilitates trust from the buyer.

• The sky is always falling: We understand that not every workplace is a calm ocean of Zen, but when a company is in a constant state of chaos, you keep missing scheduled meetings to put out fires, a buyer will rightly question whether the seller has the time and resources to invest in completing a deal, and what’s the culture really like at that business.

We get it - business is personal, and people are messy. Both buyers and sellers will have irrational behaviours and make mistakes along the way. However, how you treat people during the process speaks volumes about the type of culture that exists in your business, and ultimately impacts buyer interest.

At Continua, we value transactions that are simple, fair and people first. If you’re interested in learning more about what an exit could look like for you, please reach out at info@continuasoftware.com.