When Selling A Business most people assume the decision of who to sell to and the deal structure is all about the money. Nothing could be further from the truth.
Money, of course, is important and buyers are not going to get great deals just because they are likable. As a buyer you have to compete in the market and be realistic. But the best terms and the decision to sell is many times predicated on who a seller thinks will be the best owner and who a seller likes.
The purpose of this blog post if to give buyers some data points to chew on when negotiating:
1. As Patrick Swayze said in Roadhouse “be nice”. You are buying a legacy of an owner. A place that is emotional and a place where they have spent a large amount of their time.
2. Be Respectful of the Process: If a broker is involved that person has sold in a process to a seller. Violating, disrespecting, or ignoring that process creates barriers. Be Respectful of the Broker, The Seller, and Thier other Advisors.
3. Be Educated: Just because you were a VP at some public company do not think or assume you know the process or how to run the target acquisition. If your are looking at it you want to glean all the collective wisdom from the person who has learned by experience how to runa a company
4. Be Timely: Here in Florida there is a market place….a really fluid one….do not ever think that it is a buyers market and you can drag a seller along. Good Businesses with Good Books and Records that are Priced Correctly Sell and Sell quickly. Miss this and you will miss a deal
For more on buying and or selling a business please call me at 321-287-0349.
Michael Shea P.A. Transworld Business Advisors