The Spookiest Mistakes Sellers Make in M&A

As the leaves change and Halloween approaches, there’s something scarier than ghosts and goblins lurking in the world of mergers and acquisitions, seller mistakes. These haunting missteps can send deals running for the hills. So, grab your flashlight, and let’s uncover some of the spookiest mistakes sellers make during an M&A process (and how to keep your deal from turning into a nightmare).

1. The Ghost of Preparation Past

One of the most chilling mistakes sellers make is failing to prepare before going to market. Financials aren’t clean, key documents are missing, and there’s no clarity around true earnings. When buyers start due diligence, skeletons come out of the closet, and it’s not pretty.

🕯️ Tip: Before you list your business, conduct a readiness assessment. Clean up your books, document your processes, and address any lurking liabilities. The goal is to greet buyers confidently, not leave them ghosted.

2. The Vampire of Overvaluation

Many sellers fall victim to this creature of the night, overvaluing their business based on emotion rather than data. This mistake can suck the life out of negotiations and drive qualified buyers away.

🕯️ Tip: Work with an experienced M&A advisor who can perform a market-based valuation. It’s better to have a realistic price and attract multiple bidders than to chase a fantasy and end up in the dark.

3. The Pirate of Confidentiality

Loose lips can sink ships... or deals. Sharing too much information with employees, competitors, or unqualified buyers can create panic, rumors, and lost value.

🕯️ Tip: Use NDAs and a controlled process to protect sensitive data. Your advisor will guide you on what to reveal, when to reveal it, and to whom, ensuring your secret potion stays under wraps.

4. The Phantom Buyer Problem

Not every “interested” buyer is who they seem. Some lack funding, others are fishing for information, and a few just vanish into thin air.

🕯️ Tip: Work with a firm that properly vets buyers. At Capstone, we qualify each prospect through our extensive buyer network, ensuring your deal discussions are with real, serious acquirers, not phantom prospects.

Don’t Let Your Deal Become a Horror Story

Selling your business doesn’t have to be scary. With preparation, guidance, and the right team of advisors, you can avoid these haunting mistakes and turn your M&A journey into a success story.

So this October, light a candle, grab your pumpkin spice latte, and remember: the only thing you should be afraid of is not being ready.