{"id":561396,"date":"2012-06-27T03:23:56","date_gmt":"2012-06-27T07:23:56","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/why-deals-fall-apart-loss-momentum\/"},"modified":"2022-01-31T12:44:38","modified_gmt":"2022-01-31T17:44:38","slug":"why-deals-fall-apart-loss-momentum","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/why-deals-fall-apart-loss-momentum\/","title":{"rendered":"Why Deals Fall Apart — Loss of Momentum"},"content":{"rendered":"
\n

Deals fall apart for many reasons \u2013 some reasonable, others unreasonable.<\/p>\n

For example:<\/p>\n

\u2022\u00a0The seller doesn\u2019t have all his financials up to date.
\n\u2022\u00a0The seller doesn\u2019t have his legal\/environmental\/administrative affairs up to date.
\n\u2022\u00a0The buyer can\u2019t come up with the necessary financing.
\n\u2022\u00a0The well known \u201csurprise\u201d surfaces causing the deal to fall apart.<\/p>\n

The list could go on and on and this subject has been covered many times. However, there are more hidden reasons that threaten to end a deal usually half to three-quarters of the way to closing. These hidden reasons silently lead to a lack of or loss of momentum.<\/p>\n

This essentially means a lack of forward progress. No one notices at first. Even the advisors who are busy doing the necessary due diligence and paperwork don\u2019t notice the waning or missing momentum.\u00a0 Even though a slow-down in momentum may not be noticeable at first, an experienced business intermediary will catch it.<\/p>\n

Let\u2019s say a buyer can\u2019t get through to the seller.\u00a0 The buyer leaves repeated messages, but the calls are not returned.\u00a0 (The reverse can also happen, but for our example we\u2019ll assume the seller is unresponsive.) The buyer then calls the intermediary.\u00a0 The intermediary assures the buyer that he or she will call the seller and have him or her get in touch.\u00a0 The intermediary calls the seller and receives the same response. Calls are not returned.\u00a0 Even if calls are returned the seller may fail to provide documents, financial information, etc.<\/p>\n

To the experienced intermediary the \u201cred flag\u201d goes up. Something is wrong. If not resolved immediately, the deal will lose its momentum and things can fall apart quite rapidly. What is this hidden element that causes a loss of momentum? It is generally not price or anything concrete.<\/p>\n

It often boils down to an emotional issue. The buyer or seller gets what we call \u201ccold feet.\u201d Often it is the seller who has decided that he really doesn\u2019t want to sell and doesn\u2019t know what to do.\u00a0 It may also be that the buyer has discovered something that is quite concerning and doesn\u2019t know how to handle it. Maybe the chemistry between buyer and seller is just not there for one or the other of them. Whatever the reason, the reluctant party just tries to ignore the proceedings and lack of momentum occurs.<\/p>\n

The sooner this loss of momentum is addressed, the better the chance for the deal to continue to closing. Because the root of the problem is often an emotional issue, it has to be faced directly. An advisor, the intermediary or someone close to the person should immediately make a personal visit. Another suggestion is to get the buyer and seller together for lunch or dinner, preferably the latter. Regardless of how it happens, the loss of momentum should be addressed if the sale has any chance of closing.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Deals fall apart for many reasons \u2013 some reasonable, others unreasonable. For example: \u2022\u00a0The seller doesn\u2019t have all his financials up to date. \u2022\u00a0The seller doesn\u2019t have his legal\/environmental\/administrative affairs up to date. \u2022\u00a0The buyer can\u2019t come up with the necessary financing. \u2022\u00a0The well known \u201csurprise\u201d surfaces causing the deal to fall apart. The list […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-561396","post","type-post","status-publish","format-standard","hentry","category-selling-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=561396"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561396\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=561396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=561396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=561396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}