What goes wrong.
PAYING FOR THE OWNER'S GOODWILL
Value that departs with the seller is not value you can buy.
NOT VERIFYING REVENUE INDEPENDENTLY
Reported figures that do not reconcile to bank receipts should not be paid for.
IGNORING CUSTOMER CONCENTRATION
A few customers dominating means the business can lose most of its value in one decision.
UNDERESTIMATING WORKING CAPITAL
Spending everything on the purchase leaves nothing to operate with.
ACCEPTING THE SELLER'S REASON WITHOUT VERIFICATION
The stated reason is frequently not the real one.
RUSHING DUE DILIGENCE BECAUSE OF DEADLINE PRESSURE
Urgency imposed by a seller is a reason to slow down, not to hurry.
NOT SECURING CONSENTS BEFORE COMMITTING
Leases and contracts that do not transfer can remove the value entirely.
CHANGING TOO MUCH TOO SOON
Staff and customers leave, and you lose what you paid for.
CRITICISING THE PREVIOUS OWNER
They were trusted by everyone you now need.
NOT TRANSFERRING SYSTEM ACCESS AND ACCOUNTS
Businesses are routinely handed over with domains and accounts still controlled by the seller.
ASSUMING YOU CAN RUN IT
Competence in the work is not competence in the business, and neither is the same as knowing the industry.
NOT PLANNING THE HANDOVER SPECIFICALLY
Vague commitments to help are not performed.
BUYING A JOB WITHOUT REALISING IT
A business requiring your full-time presence with no management is employment you paid for.
TAKING ADVICE ONLY FROM PEOPLE PAID ON COMPLETION
Their interest is in the transaction happening.
