The business was fine. The seller was the problem.

Most buyers do due diligence on the financials.

Almost nobody does due diligence on the person handing them the keys.

I have watched deals fall apart after close not because the business was broken but because the seller was. Emotionally attached. Quietly resentful. Unwilling to actually leave.

The previous owner who keeps showing up. The one who still texts the employees. The one who told his best customer the new owner "doesn't really get it yet."

That is not a business problem. That is a people problem. And no LOI protects you from it.

Before I go deep on any deal now I want to know three things about the seller.

Why are they selling. What they are walking toward. And whether they can actually let go.

The answer to those three questions tells me more than two years of bank statements.

What red flags have you seen in a seller that made you walk away?

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