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Buyers Remorse:
Why Some Business Buyers
Regret The Purchase of a Business
I purchased a business and immediately faced the loss of a large customer (not disclosed by the seller), poor vendor quality and sales people submitting fraudulent commission reports. Immersion for 6 months was the only way I knew to turn around a failing business.
Purchasing a business is an emotional roller coaster; excitement & optimism combined with fear, uncertainty and doubt. There can be several reasons why business buyers regret their purchase, some of which include:
1. Unrealistic expectations: Business buyers may have unrealistic expectations and assume the purchase will instantly solve their problems i.e. leave corporate positions, additional cash flow, increased personal time. When things don't go as planned, they may feel regretful and resentful.
2. Poor due diligence: Sometimes, business buyers do not perform a detailed due diligence before purchasing and later realize the business is not what they expected.
3. Misunderstandings or miscommunications: Business buyers may have had misunderstandings with the seller regarding the terms of the purchase or the condition of the business.
4. Lack of compatibility: Business buyers may find out that the business they purchased is not compatible with their skills, experience, or values.
5. Market changes: Economic or market changes may affect the business after the purchase. If the business is not able to adapt to these changes, the buyer may face financial difficulties and/or loss of key employees.
It is important for business buyers to perform due diligence with full attention to details, maintain realistic expectations, communicate clearly with the seller in writing, and ensure the business is compatible with their skills and values before making a purchase to avoid potential regret.
My consultative process combines personal experience as a business buyer and seller, as well as a business broker to guide buyers evaluation of each business they consider purchasing.
A buyer's success as an owner is a source of pride and accomplishment to me. Not just a transaction!
Larry Goldstein
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