When it comes to selling or buying , you really need to know if the buyer or the seller is not a flake. But, how do you know all these? It’s not as if it’s written on their foreheads.
Damage calculation expert witness, Forensic accounting expert, Business valuation expert
One of the biggest signs that a sale is breaking off and is eventually going to fall apart is in the break and change in communication between the buyer or the seller, whatever the case may be.
Spoiler alert: The largest asset you’ll ever buy or sell is a business, believe us nothing gets bigger than that. Selling or buying a business can be quite pressuring, mixing that with emotions running high and then having the deal fall through can really be heartbreaking, disappointing, and demoralizing.
Fortunately, there are tell tales signs that can point out that you may be dealing with a person who is impractical, flighty, unreliable, inconsistent, indecisive, deceitful or flake out on you before you lock in an agreement. If you want to know whether you are making the right decision for your business or not,then hire Business valuation expert and make your business decision hassle-free.
If you’re worried that you might be dealing with a flake, just look for these signs. Believe us, the signs are always there, you just have to look closely enough to see it.
The buyer or seller is untrustworthy.
Before buying or selling, learn to do a research on the buyer or the seller. It is still your asset before they buy it, and it will be your asset when you buy it from them, so it is best that you do a background check on the individual you are in business with. They may just be there to waste your time with nothing in particular to return as an offer. Rather than being indulge yourself in the Damage calculation expert witness, you can contact to professionals who can bring a comprehensive approach to your work, by incorporating all the CPA and valuation and forensic backgrounds in order to give you the best perspective as per your business requirement.
The buyer or seller seems to have financial problems.
Most times the prospective buyer or seller may not be untrustworthy or have major character flaws, but if there are indications of financial issues, there’s a very likely chance that there would be an increase in the odds that they will flake out during the buying or selling process.
A buyer should show proof of funds for a down payment in order to make an offer on a potential purchase or get prequalified for a loan. You shouldn’t entertain an offer that is submitted without proof of funds, or low funds. For example, you’re selling a brand new set of tires with rims for $700, and the buyer offers you $160, don’t even think twice on the offer, simply walk away from it.
So, if the buyer claims to have the funds but can’t provide proof of those funds upfront, it can be a red flag that the person doesn’t have enough money for a down payment and is stalling. “This happens often. Get proof of funds for the down payment upfront, always.”
The buyer or seller is slow to act.
When a seller drags his feet in providing disclosures to a client he had who was interested in buying it could mean lack of interest.
If they are very serious about buying or selling an item, rest assured, they’ll be very quick to act and respond with a reply that is more than just a word. Once you see signs of “IDK,” “maybe,” or “I’ll let you know,” just know that they are flakes and are not ready for you.
If you inbox them “can you meet me @ XYZ @ 5:30 today?” And they reply with “I gotta see”, or “I work today”, and don’t reply with a follow up time and place they can meet you, chalk this one up to the birds. They’re not serious about doing business. So don’t even bother replying until they establish a meet up time and place.
A lack of transparency.
If a buyer or seller seems to be less forthcoming, it doesn’t mean the deal will fall through, but it isn’t a good sign. If there’s any attempt at anything less than full transparency, there’s generally a reason.
A lack of transparency has a lot of gray areas, it could mean that they can’t really provide all the information that you have asked for and are just trying to buy time till they can get it. Nonetheless, a lack of transparency is a sure sign of a flake buyer or seller.
The seller, buyer or agent is taking a long time to get back to you.
One of the biggest signs a sale is going to fall through is if there’s a noticeable change in the communication from the once cooperative client.
We get it that we all live busy lives and have things to do, we also know that we may not always be able to check our texts and phones, BUT, when it comes to doing business, and signing deals, we need to know that time is money. So, once a buyer takes DAYS to reply to your email or message, then it means that she is wasting your time.
Still, don’t assume that the seller or buyer is no longer interested. Oftentimes, a message can be crossed or misinterpreted via text or email, therefore picking up the phone and calling the other party is imperative. Nonetheless, avoid anyone that is taking longer than usual to reply to you on an average.
Low enthusiasm with the buyer or seller overall.
Enthusiasm is a sign that they want in and they want it. If you tend to sense that the other party isn’t all that excited to be selling his or her business or jazzed to be buying yours, it’s a negative sign, and you’ll definitely want to keep your emotions in check.
There’s a fair chance that this isn’t going to happen. “Sometimes clients themselves don’t know what they want. This could also be a signal that the prospective buyer has found a different business that he or she is excited about.
There are so many layers involved with acquisitions and financing. Unfortunately, below 15% of attempted acquisitions get completed. The simplest things can make a deal go sideways in the blink of an eye.
One potential buyer is more excited than his or her partner.
We had to save the best for last, the No. 1 sign that a purchase is going to fall apart is when one person loves the business, but their partner is more hesitant.
If it’s a joint venture then both partners should be equally excited to sell or buy, it shouldn’t be a one way venture.
Often times, flakes don’t just give off signs, they give loud and glaring signs with their indecision and lack of preparation. So, just hire HP Accounting who will also work as a Forensic accounting expert for your business. Our expert witness will assist you to bring every evidence in one spot so that you can make an impartial opinion.