The Exit Toolkit · Sheet 10 of 20
Deal killers
Why business sales collapse before completion
Unrealistic valuation
If buyer and seller expectations never meet, the deal stalls fast. Get an expert view early and hold it lightly: the value is ultimately what a buyer will pay.
Skeletons found in diligence
Unsigned contracts, tax errors, disputes and surprises erode trust and invite price chips. Whatever the issue, disclose it early and on your terms.
Deal fatigue
Slow responses and missing documents drain momentum until the buyer walks. Preparation and a good team keep the pace up.
Price chipping after exclusivity
Once you are locked in, some buyers work the price down using every diligence finding. Your defence: remove the ammunition beforehand and record the deal fully in the Heads of Terms.
External shocks and finance failures
Funding falls through, markets turn, a key customer leaves mid-deal. Ask early how the buyer is financing the purchase.
Seller hesitation
Cold feet near signing is common and expensive. Be sure of your 'why' before you start, and keep your spouse, family and advisors close throughout.
Bottom line
Almost every deal killer is cheaper to fix before the process starts than during it. That is the whole argument for preparation.
General information only, not legal advice. Steven Mather Solicitor is a trading name of Kesters Nook Limited; legal work is carried out through Nexa Law Limited, authorised and regulated by the SRA (number 633024).