What Advice Can Hurt the Sale of Your Business?

Well-Intended Guidance That Derails Deals and How to Spot It Early

Many business sales don’t fall apart because of bad businesses. They fall apart because of bad advice.

Advice from family members. From friends who “sold once.” From advisors who are excellent in their lane but not in transactions. Even from professionals who mean well but don’t understand this market, this buyer pool, or this deal structure. Many of the parties may truly have your best intentions at heart and most do. However, it doesn’t mean they’re qualified to give strategic advice on your deal.

In today’s business brokerage environment where buyers are more disciplined, lenders are tighter, and sellers are navigating emotional exits the wrong advice at the wrong time can quietly kill a deal.

This article breaks down the most common advice sellers and buyers receive that actively hurts transactions, why it’s so dangerous, and how to filter advice before it costs you six or seven figures. This is why it is crucial to surround yourself with proper advisors.

Why Advice Is Dangerous in Business Sales

Selling or buying a business is one of the most emotional and unfamiliar financial events most people ever experience. Often, it’s the largest asset that a party has and will ever sell or buy. That’s exactly why owners and buyers tend to crowd-source advice at the worst possible moments when emotions are high and stakes are real. No one wants to make a mistake. That’s why we’re here!

Not all advice is bad. But misaligned incentives are the real danger.

Before acting on guidance, ask:

• Does this person understand today’s market?
• Have they closed deals recently?
• Do they benefit if this deal happens or if it doesn’t?
• Do they have a proper background to facilitate what they’re giving advice on?

It’s amazing how many people are suddenly “experts” because they saw one article or video online. The goal here isn’t to silence voices. It’s to recognize where advice goes wrong and how to filter it properly. The wrong advisor, friend or family member giving improper advice can sink your deal faster than anyone else.

Seller Side: Advice That Hurts the Sale of Your Business

Bad Advice #1: “You’ll Get More If You Just Wait”

Common source: Family members, friends, retired entrepreneurs

On the surface, this sounds rational. But it often ignores:

• Interest rate cycles
• Buyer financing conditions
• Owner burnout
• Market timing risk
• # of available & qualified buyers for your business

Waiting assumes future performance without adjusting for risk.

Real outcome:
The business stagnates. The owner burns out. Value erodes. Life event occurs that changes how the business is run. This doesn’t mean take any low ball or first offer you receive. However, we’ve seen sellers turn down strong offers only to watch interest fade. One oil and gas business we represented passed on a $5M opportunity and now struggles to generate interest as revenue numbers decline. Another owner delayed after initial outreach from qualified buyers and tragically passed away before ever selling leaving the business in a very tough position to sell.

Markets don’t wait for perfect timing.

Bad Advice #2: “Don’t Show Everything. Buyers Will Use It Against You”

Common source: Old-school advisors, previous sellers

Withholding information doesn’t protect sellers it creates distrust. Goodwill and faith wasted is hard to recover from any party.

Buyers and lenders assume the worst during diligence. Transparency isn’t optional when:

• SBA or bank financing is involved
• Material risks exist
• Third-party verification is required
• The bad news will come out eventually. Don’t put yourself in that position.

Yes, buyers are responsible for due diligence but intentionally withholding key facts invites retrades, delays, or deal collapse. Kicking the can down the road doesn’t change the outcome it can have on the deal. Be transparent.

Bad Advice #3: “Price It High! You Can Always Come Down”

Common source: Neighbors, non-deal professionals

Within reason, slight negotiation room makes sense. From our experience pricing far above market:

• Causes listings to go stale
• Drives away qualified buyers early
• Creates credibility issues later

The first 30 to 60 days on market matter immensely.

We’ve seen listings start at peak pricing while cash flow declined underneath them. Months later, serious buyers disappeared and concessions still didn’t come.

Overpricing rarely nets more. It usually nets less. It handicaps negotiation and discourages real market activity.

Bad Advice #4: “You Don’t Need a Broker. Save the Fee”

Common source: DIY-minded family members, other professionals

This advice ignores:

• Buyer qualification
• Confidentiality risk
• Negotiation leverage
• Deal structure optimization

Unrepresented sellers often:

• Share sensitive info without NDAs
• Tip off employees too early
• Miss creative structuring opportunities

Case Study: One seller paid an attorney over $20,000 to “handle the deal” for a food distribution business. The transaction never even reached LOI. Don’t let someone run your tab up without good reason to move forward.

The hidden cost? Lower net proceeds despite ‘saving’ the fee.

Bad Advice #5: “The Buyer Should Just Trust Me”

Common source: Sellers themselves

Trust is important—but trust ≠ documentation.

Buyers, lenders, and attorneys need proof. When records don’t match verbal assurances:

• Diligence stalls
• Financing fails
• Confidence erodes
• Life events post close. Priorities change.

Deals are built on verification, not vibes. If you, the seller, are not willing to put certain issues in writing that’s a problem.

Buyer Side: Advice That Hurts Buyers

Bad Advice #1: “Make a Low Offer. You Can Always Raise It”

Common source: Friends, online forums, “Sales Guru’s”

Lowball offers often:

• Burn goodwill
• Signal unserious intent
• Get buyers deprioritized by brokers

Case Study: One buyer recently submitted an offer, on a restaurant we have listed, so low (less than 50% of the asking price) that any potential relationship with the seller was damaged immediately. The seller asked the buyer not be shown any more information and take a walk. Buyer came back with a much-improved offer but Seller wanted nothing to do with them.

You rarely get a second first impression. Don’t waste it.

Bad Advice #2: “Don’t Use a Broker—They Work for the Seller”

Common source: Internet myths. Yes, you heard me.

Yes, brokers represent sellers, they can also represent buyers, but they also:

• Control deal flow
• Understand seller psychology
• Know what terms actually close and are applicable for financing

Ignoring the broker means ignoring the best source of insight on the transaction. If you want to use the broker assisting the seller, that’s okay. Just be sure to get proper advice when needed.

Bad Advice #3: “You Don’t Need a Lender Until You Have a Deal”

Common source: Inexperienced & naive buyers

This advice leads to:

• Rejected LOIs
• Late-stage financing surprises
• DSCR failures
• Deal restructuring post agreement to allow for lender realignment
• Deal length taking 20-50% longer.

Not all lenders understand all deal types. Early lender alignment matters and brokers often know which lenders work best for which transactions. Being pre-qualified, prepared and set up to execute when a deal arrives is crucial to getting your offer accepted.

Bad Advice #4: “The Seller Promised They’ll Stay and Help”

Common source: Optimistic advisors, sometimes dishonest sellers

Verbal promises don’t survive:

• Health issues
• Fatigue
• Post-close reality

Transition expectations or guidelines must be in writing. Employment agreements and transition plans protect buyers when circumstances change. Have roles post close clear. Don’t let it become a free for all.

Bad Advice #5: “If the Numbers Look Good, the Rest Will Work Itself Out”

Common source: Spreadsheet-only buyers

Financials matter—but so do:

• Culture
• Staff retention
• Customer concentration
• Owner dependency

Ignoring qualitative risk leads to buyer remorse and post-close underperformance. Due more due diligence and prepare. Even with good numbers up front, know more and consider a Q of E report to verify those numbers. If you’re only buying because of the financials, make sure they’re as close to perfect as possible.

Advisor Advice That Quietly Damages Deals

Accountants

• Over-focus on taxes vs marketability
• Misunderstand valuation vs deal reality
• Apply multiples without context

Bad example: EBITDA calculated without adjusting for new rent or a key employee responsible for half of revenue leaving the business as previously disclosed by the Seller. Accountant added a 7x on top of that, completely outrageous. After adjustments from our team to reflect the deal structure the seller was proposing, the cash flow went from $147K+ to negative cash flow.

Good example: A large accounting firm referred a masonry company to us. Their valuation aligned closely with market and the business sold in ~100 days. Proper expectations were aligned in accordance to all parties/advisors. Allowed for faster execution and trust.

Attorneys

• Over-lawyering early conversations
• Importing terms from deals far larger and non-applicable
• Running up fees before alignment exists
• Using lawyers outside their specialty just because you know them

One attorney used a $200M APA template for an $800K deal nearly killing it. Language for M&A deal at $200M in value compared to main street deal is deal suicide. The terms do not align and apply to deals that wildly different.

Financial Planners / Wealth Advisors

• Encourage unrealistic exit targets
• Discourage sales to preserve “perfect” retirement plans

Some fail to account for business decline or ability to be sold in the future. Many want to help their clients enjoy retirement. We do too. But be sure that advisors truly understands the complications behind the business and potential capital lost for retirement if the sale doesn’t occur.

Outside Investors & Family Members

• Misaligned time horizons
• Emotional decision-making
• Internal conflict

We’ve seen minority owners and family friends derail deals entirely by pushing unreasonable terms or delaying decisions, sometimes permanently.

Our Advice: If the minority ownership or family member drawing salaries, etc out the business but is not involved in day to day, take advice with a grain of sale. Who doesn’t want to lose that free pay check? It’s fair. Again, if they don’t understand the business well or have any controlling stake, limit the noise around you so you can accomplish your goals.

How to Filter Advice the Right Way

Ask These Questions:

• Has this person closed deals recently?
• Do they benefit if the deal happens or doesn’t?
• Do they understand this buyer pool?
• Is the advice emotional or data-driven?
• Do they have any control if the deal goes through or not?

Who to Trust Most:

• Experienced business brokers
• Transaction-focused CPAs
• M&A attorneys who live in the market
• SBA lenders early in the process

Final Takeaways

Advice is never neutral; it comes with bias.

The wrong voice at the wrong time can:

• Delay a sale
• Kill financing
• Cost six or seven figures

Smart buyers and sellers build a deal team. Not a committee.

It’s okay to as questions and get advice. We encourage you too. Just know where and how to filter that advice from the proper parties.

Trust professionals who operate in the market every day, understand current conditions, and have closed transactions like yours.

If you’re selling, buying, or advising in this space — now is the time to get serious.

In this episode, we go deeper on:

• Actionable tips,
• Real-world stories
• A deeper breakdown of the topics covered above

Follow the Steps to Sold Podcast on LinkedIn , listen the Steps to Sold Podcast on Spotify. Connect with Brandon Bourgeois on LinkedIn and Chris Sater on LinkedIn.