Deal Fatigue: a condition during buyer/seller communication where parties on either side of the negotiation begin to feel frustrated.
Yes, deal fatigue is very much a “thing” and it can happen in any complex negotiation. Especially when selling a business. It can come from the buyer or seller and is also one of those times you will appreciate having a business broker on your side. Brokers can be the glue that holds your deal together.
Veteran business broker, Bianca Evans knows exactly what it’s like. She’s been in that situation dozens of times. Getting a business sold is hard. There are seemingly infinite details to button up and getting them out of order can blow up an otherwise good deal for both parties. In the course of working through this, people get frustrated, and it’s completely understandable.
Evans prepares her clients for the upcoming process. “I make sure my clients are ready for anything. Deals have a way of taking unpredictable turns. While we can’t foresee every scenario, we can prepare for the common pitfalls. The most important thing we can do is to expect the unexpected. If we have our minds right, we can clearly work through any challenge and not get flustered.”
Those unforeseen circumstances can be just about anything, and they can delay the closing. Frustrating for sure. When we asked for some real-world examples, she recites them from memory.
- The bank is delayed because of (insert a multitude of reasons here)
- I haven’t sold my house yet or I haven’t closed on my house yet
- The landlord needs more time to process the transfer request
- I’m waiting on my life insurance (bank requirement)
- Impending Hurricane
After curveballs like these, that’s when brokers like Evans prove their worth. Their job is keep moving towards a closing-whatever it takes.
All of this stretches out the process days, weeks, and even months. It’s exhausting for everyone involved. However, for the seller, the stakes are high and they need to push through.
Evans encourages her clients to allow themselves to be human. “I’ve been on the receiving end of some strong language and finger-pointing. I don’t take it personally because it’s not directed towards me. It’s the by-product of deal fatigue. I would rather the seller vent to me, rather than the buyer.”
The good news is, when you work with the right broker, deal fatigue can be minimized or even eliminated. Here are two things your broker should be doing to make the deal go smoothly.
Getting the business pre-approved for the buyers SBA backed loan
You don’t want to get your hopes up only to learn that the bank doesn’t have enough confidence in your business. If you skip this step, you risk wasting everyone’s time and straining relationships.
Pre-screen the lease documents
Most sellers don’t realize that your landlord could potentially block the sale of your company if they aren’t willing to re-assign the lease to the buyer. A great broker will spot any language in your lease documents that could be concerning. If any landlord discussions need to be had, you’ll want to do those before you list the company.
Evan’s best advice to fight deal fatigue is to face the uncomfortable. Every business has something to clean up before they’re ready for sale. It could be sloppy bookkeeping, deferred maintenance, or lack of contracts with employees and large customers. Don’t bury your head in the sand hoping buyers won’t notice. Deal with them head-on so you can do your part to reduce stress and fatigue.
Lastly, be an active participant. Working shoulder to shoulder with your broker and developing a relationship will pay dividends if fatigues start to creep in.
About Bianca Evans
Bianca Evans is an experienced business broker based in Jacksonville, Florida. She is a top producer in her field. She has made over 170 transactions since 2006 which makes her among the most seasoned in the area. She is a Certified Business Intermediary (CBI), a Certified M&A Professional (CM & AP), a Board Certified Intermediary (BCI), and has her B.S. degree from the University of Florida.
Other notable accolades and achievements:
•The Million Dollar Plus Award 2008, through 2020
•Dealmaker Award top 3% in the state for completed deals 2018
-Most dollars sold in North Florida in 2018, 2019, 2020
•Sold an array of industries including manufacturing, wholesale/distribution, service, retail, restaurants, professional offices, and more.
•25 years of Sales Experience
She maintains her professional networks by participating in a variety of associations including the International Business Brokers Association (IBBA) and the Business Brokers of Florida (BBF).
One interesting fact about Bianca is that she used to be a business owner herself! She has been on both sides of the transaction when she purchased and later sold that same business. She finds that perspective invaluable when relating to her clients and balancing the many details and emotions.
She is licensed in Georgia and Florida and speaks fluent German.
To reach Bianca, email: [email protected] or visit her website https://www.myfloridabusinessbroker.com/