The 7 Red Flags Buyers Look For
Buyers don’t walk away without reason. They see something they don’t like and they quietly vanish.
These are the seven biggest red flags that push them out of the door.
Inconsistent Financials
If your accounts don’t match your story, they’ll assume there’s more you’re not telling them.
No Management Team
Businesses where the owner does everything are worth significantly less. Buyers want continuity, not chaos.
Customer Concentration
One major customer equals one major risk. Buyers will either discount heavily or walk away entirely.
Weak Margins
Thin margins suggest deeper issues. Buyers don’t gamble.
High Staff Turnover
Consistent churn raises questions about culture and leadership.
No Contracts or Agreements
“Handshake deals” hold no value in a sale.
No Growth Strategy
If you can’t show where the next £500k of revenue is coming from, the valuation drops.
Fix these red flags and your business becomes far more attractive overnight.