Negotiating Tips and Tricks

Proactive Negotiation For Selling Your Business

If you have built a business worth selling, you probably think you're a good negotiator. But selling your business takes negotiation to an entirely different level. It's more intense, more time-consuming, more stylized and, in general, more personally momentous than any other negotiation you've conducted. Getting the best results from selling your business demands a combination of speed, predictability and coordination. Time is precious: Every day that passes can mean distractions from your business or a buyer change-of-heart. Predictability is equally important. Surprises can kill the deal or--at a minimum--offer your buyer an opportunity to renegotiate the price. It's tempting either to micromanage the process or to abdicate responsibility to the "professionals." Instead, you need to be proactive and strategically focused; constantly relating present issues to your overall goals. You must consciously place tactical decisions--what to do and when to do it--in a larger context. You must also anticipate future issues, so that they can be addressed at the best time and in the most appropriate manner. The question should not be "What is happening that requires my attention?" but "What can I do to achieve what I want?" Proactive negotiation is not some esoteric concept--it's mostly common sense. These 10 commandments for proactive negotiation in selling your business may seem simple, even obvious, but they are surprisingly hard to follow:


Sales Meeting And Negotiation Training

We've done the hard work, we've presented the business and generated the interest. Everything looks good on paper. Now it's time to meet the buyer.

First impressions are usually irreversible. Within the first few seconds of any new meeting you are evaluated, sometimes by just a glance. With stakes riding high, the first meeting with a potential purchaser can be decisive. It is vital that you present both yourself and your business in the best possible light.

Most business owners have never sold a business before and it is unlikely that they’ll know what to expect at a meeting. At Lucas & Weston we conduct hundreds of sales meetings every year on behalf of our clients. We’ve seen pretty much everything from the strange to the unusual. It is fair to say very little now surprises us.


Selling Your Business - A Quick Negotiation Tip

Here’s a simple and neat little negotiation tip for you when it comes to selling your business that you may not have thought much about before. Worth noting down and paying attention to because we have used it many, many times to help our clients sell their businesses for top dollar.

Always leave something up your sleeve!

This is particularly handy to have in place when selling your business and is something we always look for when working with vendors. If negotiations start to get “tight” or look like they are going to stall, then by having a “bonus” you can add into the deal can often keep the negotiations moving along, or just by throwing in a bonus, this can often be enough to sweeten the deal enough to get the buyer to commit.


Selling A Business - The 5 Keys To Success

Most business owners are entrepreneurs who excel at what they do but have never before been involved in selling a company. The first port of call for advice is often their accountant who will usually provide a valuation using traditional methods.

When we are selling businesses we apply lateral thinking and invariably find that we can significantly enhance the sale price over conventional valuations by concentrating on these 5 key areas:

The past three years history will only influence the price by a small fraction compared to the potential that we can help demonstrate for the next three years. This is one of the key reasons why a premium price will be paid for a business and where so many accountants undervalue their clients' businesses.