If you have been a business broker for a
significant amount of time, you are likely aware
of the constant emotional challenges we face in
Main Street and lower M&A. We ofen deal with
inexperienced buyers and sellers, where some
sellers are deeply atached to their businesses
while others can’t wait to exit them. You’ve
probably come to understand that a deal ofen
falls apart multiple times before it finally crosses
the finish line to closing. In the world of business
brokerage, it can be unrealistic to expect our
industry to become less emotionally demanding,
especially considering the ongoing uncertainty
in our world and the unique challenges brought
about by our evolving economy, notably in the
afermath of the COVID-19 pandemic.
Consider the events of this year alone. At the
outset, I successfully facilitated two substantial
transactions, one of which amounted to nearly $3
million. Concurrently, I had ongoing dealings from
the previous year that carried into this one. There
was a sense of optimism that 2023 would go down
in the books as a remarkable year, prompting
thoughts of indulging in a well-deserved treat.
However, as we progressed into the third quarter, a
series of setbacks unfolded. A significant business
deal, involving a $5 million transaction, faltered
several times during the due diligence process. On
the third a�empt, just when it seemed like success
was imminent, the SBA lender unexpectedly
flagged the buyer’s high debt-to-income ratio. This
led to a demand for the liquidation of another
property, a condition the buyer was unwilling to
meet. Consequently, the same business suffered
another blow when a major supplier relocated
outside the U.S., resulting in a substantial decrease
in its value and necessitating its withdrawal from
the market.
On a different front, another business this year
encountered a unique challenge. Despite its
thriving status, it was temporarily removed
from the market with the decision to await the
completion of its 2023 taxes. The plan is to relist
it next year with the anticipation of significantly
increasing the asking price.
Tere was a sense of
optimism that 2023 would
go down in the books as a
remarkable year, prompting
thoughts of indulging
in a well-deserved treat.
However, as we progressed
into the third quarter, a
series of setbacks unfolded.