By Glen Herman, Creative Business Services
When it comes time to negotiate the terms of a business purchase, asking the right questions can help the deal progress more smoothly. You can always expect that there will be many negotiations between buyers and sellers. So, when issues come up, good negotiating skills are necessary. When you know the right questions to ask, you will help to keep the deal on track.
May I Have Professional Representation?
Trying to negotiate a business deal on your own is rife with pitfalls. There are seemingly endless details to consider. When deeply emotionally and financially invested, it is easy to overlook details accidentally. You may react to any snag in the transaction more sharply than necessary and create tension with the other party.
Having an M&A advisor at the negotiating table with your best interests at heart can make the process go much more smoothly. An M&A advisor not only has a more neutral perspective but also understands the complex factors involved because they have negotiated so many deals. They also understand both sides of any issues that might arise. As a result, they will already have a way to smooth over any differences to the satisfaction of both parties.
How Can We All Get on the Same Page?
For a business negotiation to progress smoothly, everyone must be on the same page. Otherwise, the deal is doomed to fail before it begins. A good M&A advisor will ensure everybody is clear about each other’s expectations and goals.
It is important to keep an open mind throughout the process and be willing to listen without jumping to any conclusions. A M&A advisor knows how to present ideas and offers in a way that will appeal to both parties and keep everybody talking amicably so the transaction can continue.
How About We Split the Difference?
There is usually at least one number that comes up that not everyone can agree on. Asking to split the difference shows you are flexible and eager to keep the deal progressing. This is a common negotiating tactic that can be under-utilized when tension builds.
This is a time when having an experienced M&A advisor who understands how to get everybody talking again can be tremendously beneficial. Your M&A advisor is protecting your interests but also understands the other party’s goals. When one side makes an offer to help bring everybody to the middle, this gesture of good faith goes a long way towards ensuring the deal gets done.
Experienced M&A advisor knows the right questions to ask and plans to smooth out any bumps in the negotiation process. Their involvement will ensure a more streamlined transaction because they have the experience and knowledge necessary to make sure the entire business sale process completes successfully to the satisfaction of everyone involved.
Glen Herman is Business Intermediary of Creative Business Services/CBS-Global in Green Bay, WI. Call us to 920-432-1166. All your inquiries are strictly confidential.
Check out the The Next Chapter Webinar Series with Glen and Bill Kinnard HERE.
