As an entrepreneur, selling your company can be a monumental achievement, signifying years of hard work and dedication.
However, the euphoria can quickly fade if the buyer fails to follow through on their commitments, leaving you in a precarious situation. In such instances, it is important to stay composed and explore viable options to protect your company’s interests.
1. Open communication channels
Initiate a candid conversation with the buyer to understand the reasons behind the non-compliance. Maintain a professional tone and express your concerns regarding the agreed-upon terms. This direct approach may unveil unforeseen challenges the buyer faces, allowing both parties to explore potential resolutions.
2. Negotiate a revised agreement
Consider renegotiating the terms of the deal based on the current circumstances. A flexible approach might involve adjusting payment schedules, exploring alternative forms of compensation or even restructuring the agreement. Collaborative negotiations can salvage the transaction and maintain a positive business relationship.
3. Invoke contractual clauses
Review the sales contract for any clauses that address non-performance or default by the buyer. Some contracts include penalty provisions or specific remedies in the event of a breach. By invoking these clauses, you may prompt the buyer to reconsider their position or, at the very least, provide a foundation for further negotiations.
4. Explore market alternatives
In extreme cases where resolution seems improbable, it might be worthwhile to explore alternative buyers or revisit the market for potential suitors. This strategic move not only positions you to sell the company again but also reinforces your commitment to securing a favorable outcome for your business.
While Missouri had 548,647 small businesses in 2023, not all were successful. For entrepreneurs who achieved success and garnered interest from a buyer, a purchase fallout can be stressful. By staying diligent, you still have ways to safeguard what you built.