Why Do Deals Die?

LINK TO YOUTUBE: https://youtu.be/IpjuEwxoyzk

WEBSITE: https://www.bossgi.com

RELEASE DATE: April 18, 2024

SHOW NOTES:

Boss Talk: Selling Businesses with Jim Parker and Carey Sobel - EP 5 | Why Do Deals Die?

In episode 5 of Boss Talk, hosts Jim Parker and Carey Sobel explore the reasons why business deals sometimes fail. They share insights based on their experiences, highlighting the importance of proper preparation, honesty between buyers and sellers, and effective communication throughout the transaction process. Jim and Carey also discuss buyer and seller motivations, the due diligence process, financial considerations, and the impact of external factors like economic changes or political issues. They emphasize the significance of establishing a good rapport and trust between buyers and sellers to navigate challenges and avoid deal fatigue. The conversation also covers strategies to mitigate risks associated with employee turnover, leases, and vendor contracts, as well as ways to address potential unforeseen external factors such as the COVID-19 pandemic.

00:00 Welcome to Boss Talk: Unveiling the Mysteries of Deal Dynamics

00:15 The Art of Resuscitating Deals: Insights and Strategies

01:34 Preparation and Persistence: The Chess Game of Business Deals

03:56 Due Diligence and Financial Scrutiny: Navigating the Pitfalls

08:28 The Human Element: Trust, Likability, and Cultural Alignment in Deals

19:43 Operational Challenges and Contractual Hurdles in Closing Deals

20:21 Navigating Landlord Challenges in Business Sales

21:07 Strategic Conversations with Landlords and Franchisors

23:29 The Importance of Due Diligence and Contingency Planning

25:31 Addressing Employee Turnover and Key Employee Concerns

28:45 Mitigating External Factors and Uncontrollable Risks

37:24 The Critical Role of Honesty and Transparency in Business Sales

40:22 Creating a Successful Buyer-Seller Relationship

43:45 Concluding Thoughts on Avoiding Deal Breakdowns

 

BLOG:

 

Navigating Business Deals: Insights from Episode 5 of Boss Talk

Welcome to this insightful exploration into the complex world of business transactions. Our focus today is on a topic that every business broker, owner, and entrepreneur encounters: "Why Do Deals Die?" Drawing upon the wisdom shared in a recent episode of "Boss Talk" by seasoned professionals Jim Parker and Carey Sobel, we delve deep into the hurdles of business deals and how to transcend them.

The Perpetual Question: Why Do Deals Fail?

Every deal, at its inception, carries the promise of success; however, not all see the light of successful closure. The journey from initiation to completion of a business deal is fraught with potential pitfalls that can derail the process. Jim Parker aptly notes that despite the resilience and cunning strategy akin to playing chess, some deals still falter. The reasons are many, but often revolve around inadequate preparation, financial discrepancies, and the undervalued human element of trust and rapport.

The Catalysts of Deal Demise

- **Preparation is Paramount**: A recurring theme in successful deal closures is the groundwork laid before the deal reaches the market. Prepar