Should the Owner of a Business for Sale Expect to Negotiate Price?
This is a common question asked by business owners who are thinking about putting their business on the market for sale. They want to understand the parameters of a business deal and what to expect from prospective buyers.
Negotiation may seem a daunting task, but when explained in a balanced manner, negotiation should be deemed a positive approach rather than a negative one.
When a serious qualified prospective buyer comes along, the negotiation strategy should be one that results in a winning deal for both the seller and the buyer. It’s not about who strong-arms the other. Nor is it a game at which you either win or lose. It’s a complex process for sure.
A good deal is never one-sided. Both parties should work as allies since the goal of one will achieve the goal of the other. If the parties can determine the factors that are most important to each, the price and the terms of the deal can be structured to meet those needs. The short answer to the title question is that “a successful sale is not just about the price tag. The terms and structure are what make the deal.”
Negotiating tips that can make a deal work:
- Resolve the toughest issues first.
- Don’t get bogged down in minor details.
- Keep egos at bay.
- Focus on common interests.
- Discuss different scenarios to solve any particular problem before making a decision.