When you negotiate a business sale, you can to be sensitive to things, determined, and have common sense. Although every business seller has different approaches, there are things that you should and should not do when you want to sell business UK. Below are some strategies to successfully negotiate your business sale:
Build Rapport and a Relationship with your Possible Before Entering Negotiation
Once you get enquiry about your business, start building rapport with the possible buyer. Although you will definitely need the assistance of your lawyer to iron out the deal while due diligence is being made, your first contact with the possible buyer must your overall goals and core terms. As you try to form a relationship with the buyer, you will be aware of their desires. This will let you proceed in a more constructive way.
Business buyers will want to feel assured that your business’ potential and condition is what you say it is. But, make sure you present facts right and cautiously. Keep in mind that mistakes that you may make during the initial meeting with the buyer are not easy to rectify and usually lead to failure. You want to learn to disclose salient facts while keeping your business attractive to buyers.
Be Ready to Bend on Some Issues
Your flexibility will help you ensure you don’t lose a sale. You should not lose sight of the overall agreement if a deadlock is reached over minor problems. Think about using an intermediary when negotiating the finer details of the sale. A great broker will manage the process in a diplomatic way and guide you and your buyer through the process.
In terms of the sale price, it is best to have a main plan and a backup plan. Your plan A should be your best price. Your backup plan is a compromise; however, workable. When either of these plans does not work, then you can walk away.
Know your Worth
Consider how passionate you were about your business when you started it out and how far it has come. Use this passion and energy when negotiating for a business sale. Avoid making promises you cannot keep or offering too much discounts just to secure the sale. Also, do not grant exclusivity to a buyer at the first meeting. You should make position yourself in a way that you can still approach alternative buyers.