Our Approach
The Negotiating Process
The main purpose of negotiating is to make the deal work for both parties, if it is heavily favoured in one parties favour, regardless of whatever deal has been agreed, it is unlikely to ever materialise.
The sale of a business can be extremely complex and will involve consideration of many issues; consequently some periods within the negotiating process can be more positive than others.
When an offer is made, we will immediately present it to you for your consideration. At this point you may accept, decline or instruct us to prepare and present a counter offer. We are constantly negotiating to achieve the best deal for you.
Our input and role at this stage is key. Where negotiations can become a little difficult, our experience and ability to focus on the issues being discussed ensures that we do not react to any potentially emotional issues, thereby providing both focus and ensuring the relationship between you and the prospective purchaser remains intact and unaffected which provides a much better basis for ensuring that any particular issues have the best chance to be dealt with openly and objectively allowing the deal to progress.
Key pointers to be aware of within the process include;
Listen; as with any negotiation it is a two way process. It is important to understand the purchaser’s motivation even if you don’t necessarily agree.
Addressing any legitimate obstacles properly and professionally, will ensure they are not likely to be resurrected at a later stage.
Focus; the objective is clear, to reach agreement to sell the business for an acceptable price and on acceptable terms. Again, our role at this stage is key, ensuring any emotional considerations are dealt with professionally and consistently. Negotiating is a process that will require you to interact with the prospective purchaser to achieve an acceptable deal to both parties. Consequently try to remain flexible with a win/win outlook for all concerned.
Positive; be positive and cooperative in your approach
Open and Honest; transparency and honesty are vital to any negotiation. Any deal agreed will almost certainly be subject to due diligence and involve warranties on behalf of the seller. Information that subsequently proves unreliable or false can delay or indeed cause the whole deal to collapse incurring wasted costs and leading to possible ramifications to either party.
When to stop; once a deal has been agreed, stop. Don’t attempt to over negotiate, as while you may possibly obtain additional funds, you are far more likely to lose what was a perfectly acceptable deal.
We will always be present with you during major negotiations. Experience coupled with success has shown that time spent taking clients through the process is well spent and covers key areas including question management, attitude, evaluating the opportunity, etc.