Most bad outcomes could have been avoided by respecting a red flag the buyer talked themselves past. Here are the ones that matter — trust them.
Financial red flags
- Numbers that don't reconcile. Tax returns, P&L, and bank statements disagree. The single biggest warning.
- "Trust me, there's cash off the books." If it's not documented, it doesn't exist — you can't buy (or finance) a number you can't verify.
- Only "adjusted" figures. Endless add-backs that inflate the earnings. Make the seller justify every one.
- Revenue up but cash going down. A classic sign something's being manufactured on paper.
Business red flags
- One customer is everything. If a single client is 30%+ of revenue and they walk, you bought a problem.
- The business is the owner. If all the relationships, knowledge, and hustle leave with the seller, there may be nothing left to own.
- Declining trend they're glossing over. Ask for monthly numbers, not just annual — trends hide in the details.
- A great business at a suspiciously cheap price. Cheap is usually cheap for a reason. Find the reason.
Scam red flags (walk away immediately)
- Pressure to move fast or "another buyer is about to sign."
- Wanting a deposit before you've seen anything real.
- Pushing you off-platform to wire money directly, or demanding cashier's checks/crypto.
- Won't verify their identity or provide source documents.
Your two structural protections
Even a perfect-looking fake can't take your money if you do these two things:
- Verify the raw data yourself before you commit — real bank and tax records, not summaries.
- Move money only through escrow — a neutral, licensed third party that releases funds only when ownership actually transfers. Never wire a seller directly and hope.
On Vy2B, sellers verify their identity, listings are kept confidential, and deals run through a tracked process — but your own diligence is always the final safeguard. New to the terms? See the plain-English glossary.