I recently had an email from an innkeeping friend of mine who had sold his inn — at the last minute the sale fell apart. All the plans of the retirement and the new life have been put on hold again. This innkeeper is experienced in buying and selling inns, this being at least his second sale.
He had done all his due diligence, but nothing (or almost nothing) protects you from people who mis-represent themselves. At least the innkeeper was able to take the earnest money and use it for improvements so they can reopen in style.
There are no simple answers to situations like this. Using a B&B Broker may be part of the answer, especially if they have a practice of evaluating the buyer at the same time the lender is.
One comment the innkeeper made that I found interesting was that this time as they advertise the inn they are going to stress the business-side of the purchase, not the gorgeous home and location. Food for thought for you as you buy or sell an inn — what are you *really* selling?