Red flags to look out for early on with sellers

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by a searcher from University of Sydney
in Sydney NSW, Australia

2yrs ago

Red flags to look out for early on with sellers

What are some common behavioral red flags that can speed up a searcher's decision to walk away from a potential seller who isn't emotionally ready to sell?

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reply by a searcher 2yrs ago
from Université du Québec à Montréal in Montreal, QC, Canada

I've found that the most difficult disconnect to get over is unrealistic expectations about the business' value. If the seller is expecting an abnormally high EBITDA multiple from the get go and convinced the business is worth it, it's usually an indication to me that I'm most likely about to waste a lot of time crafting a very realistic and thoughtful offer only to see it rejected.

reply by a professional 1yr ago
in Granbury, TX, USA

If you want to pay market value and not something crazy, the owner has to want to sell...this can be for a lot of reasons, but if they are just taking offers...odds are you are wasting your time. This can show itself in a few ways...slow to get you info...not sure how much they will take...boasts the business wont survive without them...etc