Finding the right business broker is a priority because selling a business can be a lengthy and difficult process, therefore, using the right team with the best negotiators is imperative. It’s important to find the right Broker that has experience and expertise to get the best deal for you. The skills of the team include great communication, emotional control, preparation and problem analysis. Before entering into negotiations on your behalf, preparation is key because it helps determine goals, it also gives the broker an understanding of both parties desires which will assist them in getting the best result. Understanding problem areas in the negotiation is important, this will be analysed in order to find common ground to resolve any issues. When selling a business you will rely on your negotiator to work closely with you and have your best interests in mind.
A good negotiator will avoid lost opportunities by having a strategy and understanding the fundamentals. When the important factors for each party are understood, the deal can be tailored to meet those needs.
Key tips to remember when negotiating to give you the best possible results
1. Make sure the potential purchasers have the funds available, or, can get funding to purchase the business before putting offers forward. – It goes without saying to make sure to research your buyers, to save yourself from timewasters and protect yourself from bad deals. However, are you asking as many questions as your buyer is asking you?
2. Resolve any potential problems first before getting into the finer details of the deal. – You don’t want to spend your time prepping for a deal to go through, only for it to fail in the final stages due to a problem that could have been resolved earlier. Be preemptive in your approach, anticipate problems and nip them in the bud.
3. Have a realistic offer to put forward, advise and guide both parties to get the best end result, – You can’t sell something well unless you know how much it’s worth. Make sure you have a fully researched and worked out figure before moving ahead with any sale. Don’t let rose tinted glasses guide a valuation, and in the same vein, don’t undervalue.
4. If negotiations are not moving forward, take time out to assess the situation and give both parties time to reflect. – As with anything that takes a great deal of time and thought, a mental burnout is inevitable. Sometimes instead of progressing quickly, it’s wise to take some time to stop and think, really reflect on any issues and return afresh.
5. Understand and know all about the seller, e.g. Why they are selling, timescales, motivation to sell and key needs. – As with point one in this list, it’s all about knowing every facet of the business you’re selling, why you’re selling and who you’re selling to. The number one priority, have the answer to every question.