Business Seller’s Remorse and Business Buyer’s Apprehension

Buying or selling a business is as much an emotional decision as it is a financial one.  The point of this article is not to explain that seller’s remorse or the apprehension of a business buyer exists – this much is obvious. 

The purpose of this article to provide some insight as to why it might exist and how best to handle it if you are the opposite party to the transaction.

Business Seller’s Remorse
Sometimes business buyers approach a purchase negotiation with a no holds barred attitude and don’t pay enough attention to the sensitive nature of some business sales.  Some business owners sell their business very reluctantly and do not appreciate a hard-nosed or confrontational approach.  The point is, as a business buyer, you must know when to give and when to take. 

Suppose the business for sale that you are enquiring about is a company that is being sold due to the death of one of the spouses.  A better approach to a listing like this would be to use sensitivity, tact and reassure the remaining spouse that you will continue to run the business in the manner in which the previous owner had envisioned. 

Buying a business that is for sale truly is a different approach than a real estate purchase.  A win-win approach is the better course of action.  The worst situation is going through the pain of getting a deal then later having it all fall apart due to emotional issues that could have been properly mitigated.

Business Buyer’s Apprehension
On the flip side, if you are a business owner looking at selling a business, you must understand that some buyers enter into business purchases very reluctantly and tact must be used here as well.  Sometimes buyers walk away from conditional sales for a variety of reasons such as fear of going into business for themselves, fear of debt, responsibility or general cold feet.  Confidence is a major factor in purchasing a business for sale and as a business owner, it is prudent to give the buyer all the facts about your business, the benefits to ownership and how they will succeed with your business. 

Fear and apprehension are natural emotions during a business transaction.  If you are serious about selling your business you will need to learn how best to mitigate unfounded fears and uncertainties on the part of potential investors.  Talk to a business broker with experience in handling buyers and sellers.  A Toronto business broker who is a true intermediary, working to get the deal completed for both parties is a professional you should consider using to help sell a business.