Negotiating the Sale: Strategies for Success
If you’re thinking about parting ways with your business, negotiating the sale is a given. The opening offer is just a way to get the process moving — understanding strategic negotiation can help both you and the buyer walk away feeling like winners.
The professionals at Sunbelt Business Brokers have the experience to help you negotiate the sale of your small or medium-sized business and get you to close with the most value possible.
Here are a few useful strategies for achieving success when selling a business.
What Is a Negotiation?
A negotiation is a discussion between a seller and a buyer to come to terms on a deal. It can help address concerns and resolve disagreements in a way that’s acceptable to both parties.
You can expect there to be give and take on both sides, which might include adjusting your pricing, adding or subtracting assets, or changing how you structure the deal. Ideally, each party will leave the negotiating table with mutual benefit.
The Difference With a Strong Strategy
The right strategy can get you the deal you want when selling your business. That said, it’s important to know the difference between negotiation strategies and negotiation tactics.
A negotiation strategy takes a broad, long-term look at the outcome you desire. It requires research, analysis, and goal setting to give you a road map for negotiations and decision-making.
By contrast, tactics are the specific steps or actions taken to achieve the objectives of your strategy. Successful outcomes typically result from a combination of the two.
An approach that seeks a win-win arrangement often yields the best results. This requires the buyer and seller to understand one another’s needs and objectives. This type of robust strategy is one of the reasons Sunbelt Business Brokers sells more privately owned companies than many other business brokers.
Relationship Building
It might seem counterintuitive, but negotiating an effective sale means focusing on the buyer.
Getting to know prospective buyers and their goals can provide the insight you need to work out a deal that’s favorable for both sides. It also promotes post-sale communication for such tasks as:
- Transitioning the business
- Answering important legal questions
- Maintaining a working relationship
The professionals at Sunbelt Business Brokers are trained to manage negotiations to secure the best possible results.
Overcoming Obstacles
Negotiating the sale of a business is a nuanced process that can present many obstacles. Fortunately, they can be overcome with a mutualistic approach that involves accurately determining your buyer’s motivations, building trust through transparency, avoiding the trap of focusing on price, and addressing both parties’ needs.
Our free business valuation calculator can get you started by giving you a better idea of your company’s true value.
Finalizing the Deal
Once you come to terms with the buyer, there’s still plenty of work to be done, making the strategy for finalizing the sale critical. You must get the buyer to sign a letter of intent. Buyer due diligence then begins before the deal can close.
Business sales often fall apart during due diligence. Our brokers can prepare the letter of intent and other documents and work with the buyer’s lawyers, accountants, and financial and business advisors to keep the deal moving forward. By keeping everyone on the same page, you can reach a timely and satisfactory close.
Trust Sunbelt Business Brokers to Help You Sell Your Business
When selling your business, you need a negotiation strategy that builds relationships, removes obstacles, and gets both parties to close with much to gain. At Sunbelt Business Brokers, we employ a comprehensive strategy to get clients the best prices for their businesses. Contact us today to learn more.
