When negotiating a business purchase, it is easy for the Buyer to think they have all the power in the negotiation, and that the Seller is so motivated to achieve a sale, the Buyer has all the control.
This is not always the case. To achieve a sale “it takes Two “ ; a willing buyer and a willing seller.
In a recent sale I have been involved with the buyer and their solicitor were placing a number of demands on the sellers during the due diligence process, expecting them to agree without hesitation to achieve a sale.
Believing the Buyer had control, they negotiated hard on terms that in retrospect were not really that important to them anyway.
In doing this the Sellers lost trust with the Buyers and their ability to take over the business they had taken so long to build. As a result the Sellers waited for the first opportunity available to them and cancelled the contract. This was an expensive exercise for both parties.
While it is rare for the Seller to cancel a contract, it is important for Buyers to consider that this is a possibility when negotiating and working through the due diligence process. Make sure the points of negotiation are worth the risk , because without a willing buyer and willing seller, a sale will not be achieved.