Last month, I discussed the four main reasons owners sell their companies: divorce, retirement, the industry is hot, or being burnt out. Another reason owners opt to sell is if they know their industry or business is about to tank. For the seller, this is a great opportunity to sell the business to a less-informed party. These sellers will negotiate as reasonable, friendly people, but in reality, they're trying to convince you to buy up all of their risk.

Retirement, divorce, or a hot industry are the most common reasons businesses are sold. Sometimes, entrepreneurs are just tired. When you initially ask for the reason an owner is selling, they’ll have a standard, lofty story. It always sounds great, but it will usually follow one of those four themes.

It can get messy when an owner is selling the business while still employing their children. The owner will tell you their salaries and that they want the children to stay in the business. That’s a tough decision to make as a buyer.

Early on in my career, I learned a lot from a specific deal. A seller wasn’t being straight with me, and I caught on pretty fast.

As you get deeper into entrepreneurship through acquisition, you're going to find yourself in competition with other buyers. It can be hard to know when the intentions of other buyers are genuine, when to compete with their offers, or when to back down.