7. De-Risking the Deal - What Buyers Fear Most

business brokers manage the sales process methodically and professionally

helping sellers build confidence, not concern, in the eyes of a buyer

Business buyers don’t expect perfection - they expect clarity and confidence.

And when they don’t see it?
They hesitate.
They discount.
Or they walk.

That’s not about the business being bad.
It’s about the buyer being unsure of the future, because something feels fragile, unclear, or risky.

 

🔍 The 5 Biggest Fears Buyers Have (and What to Do About Them)

1. Owner Dependency

What they fear - “If the owner leaves, this business collapses.”
How to address -

  • Build clear delegation

  • Document systems

  • Reduce personal client contact

 

2. Poor Financial Clarity

What they fear - “What else are they hiding?”
How to address -

  • Clean up the books

  • Explain add-backs clearly

  • Pre-empt questions with transparency

 

3. Customer Concentration

What they fear - “One client leaves and this business tanks.”
How to address -

  • Diversify where possible

  • Provide historical retention data

  • Show plans for client risk mitigation

 

4. Weak Operational Systems

What they fear - “This is chaos without the owner.”
How to address -

  • Build SOPs (standard operating procedures)

  • Clarify team roles

  • Introduce key staff to buyer early if appropriate

 

5. Lack of Growth Narrative

What they fear - “I’ll pay this price and it will just flatline.”
How to address -

  • Present 1–3 realistic growth opportunities

  • Show how growth doesn’t require huge extra capital

  • Align the narrative with buyer’s skillset/vision

 

🛠 Broker Questions to Uncover Buyer Risk Early

Ask your sellers these to surface (and solve) potential deal killers -

  • “What would break if you disappeared for 30 days?”

  • “What are the top 3 questions a buyer is going to ask?”

  • “How would a buyer grow this business and can they do it without reinventing everything?”

  • “Would the financials stand up in a buyer’s data room today?”

 

💬 Reframing the Conversation With the Seller

Use language like this to keep the conversation constructive -

  • “We’re not looking for perfection we’re looking for predictability.”

  • “Buyers will pay more for certainty, even if the business isn’t perfect.”

  • “Let’s fix what we can, and frame the rest transparently.”

  • “When we lead with clarity, we don’t have to negotiate with excuses.”

 

🧠 A Quick Story

One broker I worked with had a seller who didn’t see the point of documenting anything. “Anyone smart can figure this business out,” he said.

The buyer didn’t agree.

Even though the business was profitable, the deal stalled. The buyer didn’t want to figure it out - they wanted to run it confidently.

Eventually, we helped the seller create a playbook - simple SOPs, team chart, key contacts.
The deal closed 8 weeks later, with no price drop.

 

🤝 Final Thought

De-risking isn’t about glossing over flaws. It’s about showing the buyer - “Here’s what’s working. Here’s what’s being fixed and here’s what you can count on.”

As a broker, when you help sellers see their business through a buyer’s lens, you make smarter deals happen faster and with fewer concessions.

If you’ve got a deal that’s getting cool, let’s have a conversation.
I’m happy to help you find and reframe the risk that’s holding it back.



👉 Book a free 15-min strategy call https://www.regenerationhq.co.nz/contact
👉 Or reply to john.luxton@regenerationhq.co.nz and tell me what you’re working through.

Previous
Previous

6. Should Your Client Accept an Earn-Out?

Next
Next

8. How to Prep a Business for Sale 12-24 Months Out