Sometimes my honesty gets me into trouble, I don’t always sugar-coat things and tend to just say whatever I’m thinking.
But over the years, many of my clients have told me that’s exactly why they value working with me. They know they’re getting a straight answer, not the version that sounds nice, but the one they need to hear. I think in corporate finance, blunt honesty isn’t a flaw. It’s essential.
I read recently that over 70% of privately owned businesses listed for sale fail to complete a transaction within 12 months! Thankfully, at Quantify, our success rates are much higher and I firmly believe one of the biggest reasons is honest, realistic advice from day one.
There are plenty of reasons deals fall over, which all feed into my chat around ‘getting ready for sale early’
But one issue comes up time and time again – The Price Expectation Gap.
Sellers are emotionally invested and this is understandable, as a business owner, I get this. They’ve poured years of blood, sweat and tears into building their business and know its potential. They never want to feel that they are underselling something they’ve sacrificed so much for. However, buyers look at it for a much less emotional angle, they aren’t buying the journey, they’re buying future returns and risk-adjusted payback. That disconnect is where many deals die. It’s especially tough when expectations are shaped by:
Our role as advisors isn’t to tell clients what they want to hear, it’s to tell them what the market will pay and why. Setting realistic valuation ranges before going to market builds trust, protects credibility, and dramatically increases the chances of completing a successful transaction.
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