BEFORE YOU SELL, HAND OVER OR BRING ON INVESTORS
Buyers & investors don't walk away from businesses.
They walk away from surprises.
55% of broken deals died on things the seller could have fixed first.
What breaks a deal
Why buyers walked
Axial reviewed 75 deals that fell apart after a letter of intent was signed. The green bars are problems a seller can fix before going to market.
Source: Axial, Dead Deal Report 2025. Lower-middle-market deals; 6.7% had other reasons. Fixable grouping is GROWTHROOM’s.
Our view
“Here’s what no deal report tracks: buyers need to fall for the brand. If it looks tired and hasn’t kept up with what customers want today, they start doubting the next five years. And the next five years are exactly what they’re paying for.”
Founder, GROWTHROOM
The type of surprises we help you fix, before a buyer or investor finds them
Diligence surprises
Clean files
Contracts, leases and licenses in one place, checked for transfer clauses
Employee agreements, policies and safety records brought up to date
A due-diligence folder ready before anyone asks for it
Shaky recent earnings
Numbers that hold up
Monthly books closed on time, with personal and one-off costs separated
Add-backs documented with your accountant, so your owner earnings stand up
A profit trend you can explain line by line
Price renegotiation
A price you can defend
Customer concentration and churn understood before a buyer raises it
Margins by customer and service, so weak spots get fixed, not discovered
Recurring revenue and pipeline tracked and reported monthly
Dated brand
A brand buyers want to own
A brand refresh that looks current and fits today’s customers
Clear positioning on why customers choose you over competitors
Reviews, website and customer experience that back the brand up
Slipping mid-sale
Runs without you
Key processes documented, so the team runs day-to-day
Customer and supplier relationships moved to named team members
A manager or second-in-command in place, tested while you step back
Financing
Bankable
Cash flow forecasts and reporting a lender or investor recognizes
Consistent financials that support the buyer’s or investor’s case
Debt, working capital and assets reviewed, so the business can carry acquisition or growth funding