Is it worth pausing a business sale if my personal circumstances change?

A change in health, family or finances can alter what you want from a sale. BDC says your reasons for selling will likely influence your goals for the transaction. If those reasons have changed, it is reasonable to ask whether the sale still fits. This page cannot say whether you should pause. It sets out what to check before you decide.

Read what you have already agreed to

BDC describes a letter of intent as a document that can assure a buyer a period of exclusivity for negotiations, and says that where it so provides it creates binding obligations on one party or the other, particularly on confidentiality and exclusivity. Check whether yours does. Confirm how long the exclusivity runs, what happens if you ask for more time, and whether you can end discussions. A lawyer can tell you what each clause means for you.

Compare a pause with the alternatives

BDC warns that owners who sell at a time that is not ideal, for example because of health issues, may not get the best outcome compared with what planning would have achieved. That is an argument for weighing a pause seriously. A pause is not the only choice, though. Depending on your agreements, you might ask the buyer for more time, reduce your involvement, bring in a manager, or set a later date for closing. Each one may have legal and tax consequences, so check before you propose it.

Talk to the buyer carefully

If a buyer has spent money on due diligence, ask how they will react to a delay. Be accurate about what has changed and say only as much as you want to share. BDC notes that a change in business ownership can be disruptive for employees, customers and suppliers, so ask whether a pause would affect confidentiality. Our page on how to keep a sale confidential may help.