Sellers don’t diligence buyers enough. In SMB listings, some brokers and bankers are taking efforts early to screen out searchers and other potential buyers. But in many processes and unbrokered sales, the owner walks down the aisle with little guidance or concern as to the qualities of the buyer. Big headline numbers and steak dinners become blinders. If you’re selling, vetting the buyer is critical especially when: - you’re selling your business but will have a stake in things after close (seller note, earnout, rollover, operational role, etc.) - you’re spending time and money on advisors in hopes of getting a deal done - you’re facing a period between sign and close (when there’s execution risk and need for continued cooperation) - you have more than one option for your company’s future (you usually do) Ask about resources, track record, plans, ability to deliver. Dig into the terms they’re proposing. If you’re buying, be prepared to answer these things with clarity and confidence. Factor this into how you structure deals and what you’re prepared to stand behind. Get to know your deal partners and what you’re signing up for.