If You See These Red Flags, Hit Pause on the Deal

Most business owners know they should do due diligence before entering a transaction. But even with that in mind, people sometimes push ahead when they shouldn’t. The deal seems too good to pass up, or they feel pressured to move fast. Instead of slowing down to ask questions, they override their instincts and ignore clear warning signs. That’s where things often go wrong. If you spot any of these red flags, hit pause and seriously consider your next step. The deal may still work, but not without a closer look.

Rushing the Timeline

If someone is pushing you to sign quickly, that’s a red flag. Whether it’s a business purchase, investment, or partnership, there’s rarely a good reason to skip review time. A tight timeline usually means someone is hoping you’ll miss something. It’s often better to walk away from a rushed deal than to sift through the fallout later.

Overpromising and Vague Assurances

Another common red flag is the promise of guaranteed results, outsized returns, or “can’t-fail” outcomes. Good transactions are built on real numbers, not hype. When someone talks in generalities but can’t (or won’t) provide details to back them up, take that as a sign to dig deeper. Trust isn’t built on energy and optimism, but on transparency and facts.

Disorganization and Missing Documents

It may sound simple, but being organized matters. If the other party can’t keep track of their paperwork or has missing or outdated documents, that’s a warning. It shows how they run their business and how they may handle problems down the line. You shouldn’t have to chase someone for basic information or piece together their financials from scratch.

Last-Minute Changes

A deal that shifts at the last second should raise questions. If key terms get changed right before signing, especially without discussion or explanation, that’s not a minor issue. You want to work with people who keep their word and communicate clearly. A pattern of surprises is often a sign of deeper problems.

Most red flags point to the same root issue: trust. If you don’t feel confident that the other party is being honest, upfront, and consistent, that’s not a relationship you want to build on. Even if you want the deal to work, the cost of fixing a bad decision later is almost always higher than doing it right the first time.

Working with a law firm before you agree to terms can help you spot risks you might overlook. At Temple Law, PLLC, we work with clients who value efficiency, ethics, and transparent decision-making. If you’re thinking about a transaction and want another set of eyes on it, reach out to see how we can help protect your time and resources.