Every business owner knows that negotiations can be very stressful. However even with all your experience negotiating contracts and services, even the most experienced business owners may feel they are unprepared to negotiate the sale of their business. Here are some things to keep in mind during the negotiations for selling a business, according to Entrepreneur Magazine.
- Price is not Everything: Obviously, you want to walk away with the most money possible in your pocket. However, the terms of the sale also matter and should be considered. Thinking about how the payout will occur, your future commitment with the business, and what is going to happen to your former employees are all things that your should think about before the final sale.
- Make Strategic Concessions: Sometimes to get what your really want, you’ve got to give away something valuable. This builds good will between you and the buyer. Additionally, you have leverage to ask for something just as or even more valuable than what your just gave up.
- It’s OK to Walk Away: It’s very easy to get tunnel vision when it comes to the negotiation process, especially if an outside force is pressuring you to sell quickly. But a seller should not have to accept a deal that they are uncomfortable with. When beginning the negotiation process, reflect and define what terms and/or price you are unwilling to accept. By already having an idea of what you’re unwilling to accept, it becomes much easier to say to no to a deal that will not work for you.
How can Gateway MA assist me during the negotiation process?
By utilizing a Gateway Representative, you can establish a buffer between yourself and a potential buyer. By keeping negotiations at arms length, the Seller has the opportunity to maximize the final selling price. Additionally, but just as importantly, the Buyer and Seller can establish and maintain a working relationship. Utilizing your Gateway Broker to handle your negotiations, you can trust that your interests are always been kept in mind. Our Brokers and Intermediaries have significant experience negotiating successful terms and conditions for the transfer of businesses, with the minimal amount of stress for the Buyer and Seller.