What sellers often miss
Many owners assume that if a risk has never created a problem in the past, it is unlikely to concern a buyer. Buyers view the issue differently. They are not evaluating what happened under your ownership. They are evaluating what could happen under theirs. Even dormant risks can become major negotiation points if they create uncertainty about future performance.
The takeaway
Every unresolved risk ultimately has a cost. The question is whether you choose to address it before going to market or pay for it during negotiations. The sellers who achieve the best outcomes are not necessarily those with the fewest risks. They are the ones who have identified, mitigated, and documented them before buyers arrive.
Illustrative, not your deal. Where the book uses dollar figures, they are there to show how something works, not to describe your business. Your banker, your accountant, and your attorney will put real numbers to your own situation. Full note.
Terms this chapter uses
Read the full chapter in the book