The business acquisition process demands sharp attention from everyone involved. You probably spend months preparing your company and checking out interested buyers early on.
But sometimes, problems pop up when the company trying to buy yours starts acting strangely after you’ve already put serious time into the deal. Spotting these warning signs quickly might save you from a bad partnership or unfair terms.
Red flags to watch for
Your potential buyer might start showing concerning behaviors that weren’t obvious during your first meetings. Keep an eye out for these warning signs:
- Communication delays: When buyers suddenly stop answering calls or take forever to respond to emails, they might be hiding something or having second thoughts.
- Financial inconsistencies: Buyers asking for more time to get their funding together or avoiding questions about their financial situation probably don’t have the money they claimed.
- Changing deal terms: If they keep trying to rework parts of the agreement you’ve already settled, they’re likely testing how much they can get away with.
- Excessive confidentiality: Some privacy makes sense, but if they refuse to share basic information about their company or who runs it, they might have legal troubles they’re hiding.
- Rushed timeline: When someone pushes you to skip normal review steps or hurry through closing, they typically hope to finish before you discover their problems.
These behaviors should raise serious concerns about this potential buyer. Under Florida law, acquirers who misrepresent material facts or hide key information during these transactions may be violating state securities regulations.
Protecting your interests
When you notice troubling signs from an acquirer, you need to take action to protect your business. Here are some steps you can take:
- Save every email and document your phone calls
- Talk to your lawyer about adding extra protections
- Ask for proof they can actually pay what they’ve promised
- Search online for reviews or news about their past deals
- Be ready to walk away if needed
Your business represents countless hours of hard work and personal sacrifice. It deserves a buyer who shows genuine respect and operates with complete transparency. Watching for these warning signs can help you find a trustworthy partner who truly values what you’ve built.