Why good deals fall apart
If you've built a successful business, you've probably had your share of buyer inquiries. Most sound the same - lots of talk about "partnerships" and "vision." But getting from initial conversation to closed deal? That's where things get real. Here's what we've learned about why good deals fall apart.
Unrealistic Expectations
Most deals fall apart over valuation - not because buyers are trying to lowball, but because both sides work from different assumptions. Every industry has its own value drivers, and standard multiples don't always apply. What matters is understanding what makes your business uniquely valuable.
Example: A recent seller expected a premium multiple because "that's what my friend got" - but their friend's business operated in a different geographic market with different customer and patient dynamics. Understanding your specific market is crucial.
Surprising Findings
No owner likes surprises during due diligence. But it's not just about clean financials - it's about understanding your operations, customer relationships, and what makes your business sustainable. The best outcomes happen when both sides take time to understand these elements thoroughly.
Example: A practice showed strong profits, but diligence revealed 60% of referrals came from one physician group. This wasn't a deal-breaker, but it needed to be addressed early in discussions.
Team and Culture Fit
Your employees helped build your success. The wrong buyer can unravel years of careful team building and damage customer relationships that took decades to establish. Chemistry is critical.
Example: A promising deal stalled when the owner realized the buyer's post-close plans would likely drive away key team members. Having this conversation early saves everyone time.
Loss of Momentum
Good deals move with purpose. When processes drag on, both sides lose enthusiasm and confidence. Clear timelines and steady communication keep things on track.
Practical tips for success
Before you start:
Understand your quality metrics and patient outcomes
Document your clinical protocols and care standards
Know your payor mix and referral patterns
Have a clear view of your team's strengths and weaknesses
Understand your working capital needs
Be realistic about transition timing - many buyers will want 12 months minimum
During the process:
Set clear timelines with your potential buyer
Respond to information requests within 48 hours
Keep running your business well - strong performance during diligence matters
Schedule regular check-ins
Bring up concerns early - they rarely improve with time
Watch out for:
Vague or constantly shifting timelines from LOI to close
Poor communication early in the process
Unwillingness to discuss their plans for your business post-close
Vague plans about maintaining clinical quality
Lack of understanding of your customer or patient population
The Bottom Line
Good deals happen when both sides understand what matters - not just the financials, but the relationships and details that make your business work. We believe in understanding these elements early and building a transition plan that protects what you've built for the long term.
What's Next?
If you're thinking about your company's next chapter, let's talk. No pressure, no promises — just a direct conversation about your business to help you think through next steps.
