We have a saying at Cornerstone: “Go ugly early.” When you’re selling a business, put issues on the table right away. Whether you’ve just lost a customer, your backlog isn’t what it was, or you’re operating at capacity—be up front.
Providing clarity around your business flaws serves two purposes. First, it makes the whole process more efficient. If customer concentration is a no-go issue for a buyer, let’s flush them out early before we’ve invested any time or money. Transparency also brings credibility, establishing you and your advisors as honest, ethical people. That goodwill can go a long way in negotiations.