How to Identify Deal Breakers Early in a Deal

Knowing your goals and understanding your non-negotiables can save you time and energy, whether you’re buying or selling a practice. Don’t waste time on a deal only to discover a critical issue down the line. Identify your deal breakers early and approach the process with confidence.

Red Flags vs. Deal Breakers: What’s the Difference?

• Red Flags: These are warning signs that signal potential misalignment but don’t necessarily end the deal. They’re worth addressing and discussing upfront.
• Deal Breakers: These are non-negotiables that make it impossible for the deal to work. A deal breaker for you may not be one for someone else, but it’s vital to know your limits.

Understanding these distinctions helps you stay focused on deals that align with your goals, while saving time and energy on those that don’t.

Why Self-Awareness Matters

Red flags and deal breakers aren’t just about the other party—they’re about you. What do you truly want in this deal? What are your non-negotiables? With self-awareness, you’ll be better equipped to navigate potential issues and make decisions confidently.

For example, if steady cash flow or client care is critical to you, understanding those priorities upfront helps you avoid mismatches. Think of it as setting your “must-have” and “nice-to-have” lists before diving in.

Steps to Identify Your Non-Negotiables

Reflect on Your Goals

Before entering any deal, take time to evaluate your priorities:

• • What are your “must-haves”?
  • What are your “nice-to-haves”?
  • What are your absolute deal breakers?

Communicate Clearly

Transparency is key. Whether you’re buying or selling, be upfront about your goals, expectations, and non-negotiables. Clear communication helps both parties determine if the relationship is worth pursuing.

Be Open to Compromise

Not every red flag is a deal breaker. Some issues may be resolved through negotiation or creative problem-solving. Stay open to possibilities while staying true to your core values.

Real-Life Lessons: When Reflection Matters

Take Mike, for instance. He purchased a practice without considering why the staff turnover was so high. Turns out, the seller wasn’t generous with payroll, and Mike inherited a mess. The lesson? Reflect on your priorities and ask the tough questions upfront.

At Growth Focus, we help buyers and sellers identify priorities, spot red flags, and navigate deal breakers with clarity. Our goal is to make the process smooth, transparent, and rewarding for all parties involved.

Final Thoughts: Clarity Leads to Success

Buying or selling a practice isn’t about assuming the worst—it’s about understanding your goals and being clear from the start. When both parties approach the deal with transparency, it’s easier to avoid mismatches and focus on what truly works.

Just like in dating, the best partnerships aren’t about perfection—they’re about mutual understanding, alignment, and collaboration.