Prior to selling your business, identify the traits you want in the buyer. That way, when you receive a strong offer from a potential buyer and do your due diligence, you know what you don’t want. For instance, if your buyer has just parted ways with another business and did not leave on good terms, you may wish to pass. Or if you want your employees treated in a specific manner, make sure your ‘cultures’ and ‘values’ align.
Even though an offer makes financial sense, you may decide to pass for ‘other’ reasons. If there is not a fit and the purchase goes through, the employees may quit, and performance decline…and if you have an earnout, your financial reward is lessoned.
Money is a big piece of any deal, but legacy and culture issues can override a financial decision. The heart wins in the end.
