Welcome back to the Mid Market Insider!
Today, I’m breaking down why most business sales don’t fall apart over price—they fall apart during diligence, when hidden risks and overlooked issues begin to erode buyer confidence.
Thinking About Selling Your Business?
If you're considering a sale or simply exploring your options, feel free to learn more and start the conversation below:
Most business owners think deals typically break down because of price.
In reality?
Most deals die in the diligence process.
And to show you why, let me tell you a story:
I once heard of a guy who went to market with what looked like a strong company.
Solid EBITDA. Growing revenue. Good industry.
The banker he’d hired was confident.
But then diligence started…
And within three weeks, the buyer had uncovered revenue inconsistencies... undocumented processes… and a customer concentration issue no one had realized was there.
The deal didn’t die immediately.
It just… slowly bled out. As the buyer lost more and more interest with each new red flag popping up.
This happens every day.
The diligence process can be where deals go to die…
Or…
It can be where you show a potential buyer how serious you are, and how well you understand the process. Instantly standing out in a crowd of clueless business owners.
To help you there, I recorded a short video that reveals how to survive (and thrive in) the due diligence phase of a deal.
Here’s a small sample of what you’ll learn:
What buyers typically ask for during diligence… and what they’re actually looking for “behind the scenes”...
Why having all your documents on hand is NOT the same as being ready for diligence…
A simple formula for determining how buyers will value your business (and no, it’s not just your EBITDA… most owners fail to take into account this second, crucial ingredient too…)
If you plan to sell in the next 1-5 years – or even if you’re just thinking about it – it’s critical you watch this video. Your future self will thank you.
That’s all for today’s newsletter! Thanks for reading!
📅 Next Week:
In next week’s edition, I’ll break down the single biggest factor that gives sellers leverage during an exit—and why the best deals happen when buyers compete instead of negotiate.
And how positioning your business the right way can attract multiple serious buyers, strengthen your negotiating power, and lead to a better outcome.
Keep building,
Nick
In Case You Missed It: Must-Watch Video
How to Prepare for Buyer Due Diligence (What Buyers Actually Look For)
Click the link below and check it out:
