Failure to Launch: How not having a realistic view of the market damages a seller’s ability to have a successful sale
Every so often, we come across a seller with a good practice on paper, but the deal never gets off the ground. Why? Not because there weren’t buyers, not because the practice wasn’t profitable—but because the seller’s expectations were so far out of line with the market that nobody could move forward.
Here’s a real example. We were working with a seller who:
Wanted 125% of last year’s revenue as the sale price. That’s right, their practice was grossing over $1 million dollars and their expectation for a “fair” sale price was over $1.25 million.
Expected the buyer to continue paying some of their expenses long after the sale closed and even for a duration after their employment ended.
Insisted on multiple meetings with the buyer just to “make sure they were a fit”—far beyond what’s normal in these transactions.
Any one of those demands on its own would have made the deal tougher. All three together? Complete deal killers. The seller was looking for a private equity–style payout in what was clearly a private buyer transaction. The interest couldn’t have been less aligned.
We tried—multiple times—to walk them through the market, to explain where value really comes from, to be that voice of reason. But it quickly became clear that the only way to get a listing agreement signed was to cave, and we don’t cave. That’s not how we operate. Deals must be fair on both sides. The best transactions happen when both the buyer and the seller walk away feeling like they got a fair deal and no one feels as though they were taken advantage of.
The Lesson for Sellers
Private sale deals rarely fall apart because there aren’t enough buyers. They fall apart because sellers go to market without a clear understanding of what the market will support. The good news? That’s preventable.
Get a fair market valuation report. Don’t guess. Don’t price off what you “need to retire.” A proper valuation shows you what the market will actually pay.
Talk to advisors before you list. A broker/sell-side advisor can give you the reality check you need around value, deal structure, and what’s financeable.
Know what the market will bear. Buyers pay based on sustainable cash flow and comparables, not sweat equity or emotions. If you think like a buyer, you’ll understand how they view risk and return.
Leave emotion at the door. Selling your business is not just a financial decision, it is an emotional one. As hard as it is to hear that your business may not be worth what you thought it would be, or that the business may have some “warts”, accept the feedback and take the emotion out of it. Sometimes getting a dose of reality can be the best way to level set your expectations and provide you with some items to work on before the sale to improve them and thus improving the value or marketability of your practice.
Bottom Line
If you want to sell your practice, start by educating yourself on the market. Get the numbers. Get the advice. Understand how deals get done. The sellers who enter the process informed and aligned with reality don’t just make it to closing—they set the stage for a smooth transition, where a confident new owner carries forward the legacy of the practice you worked so hard to build.
Thank you for your interest in Wicklow!
Our team understands how to help you find the right opportunity that fits your specific needs, and we’re committed to helping you succeed. Should you have any questions, fill out the form below with your details, and we'll get back to you as soon as possible. Your information is secure and will only be used to assist you.
