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By Peter C. King, CEO
VR Business Brokers/Mergers & Acquisitions
THE BUYERS’S EDGE: HOW TO SPOT RISKS BEFORE
AQUIRING A BUSINESS
The market for buying and selling businesses continues to present significant opportunities, but it also carries substantial risk. Economic conditions, financing
availability, and buyer sentiment may shift, yet lenders remain disciplined, due diligence remains rigorous, and valuation expectations often differ between buyers and sellers. For buyers, success depends not only on finding the right acquisition target, but on understanding why the owner is selling and whether hidden risks are driving the decision.
WHY OWNERS DECIDE TO SELL
Owners rarely share the full story behind their decision to sell. Some reasons are positive,
such as retirement or a desire to cash out after years of growth. Others are warning signs.
Competitive pressure, rising costs, regulatory uncertainty, or technology disruption often
push owners toward the exit. If margins are shrinking or the industry is losing momentum, sellers may hope to pass those problems along before they show up in the numbers
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