This article will discuss three questions to ask yourself when negotiating a deal. There is a high degree of negotiation involved between buyers and sellers on every sale of a business. The best outcomes are typically only achieved through proper negotiation strategies. One of the key strengths possessed by your M&A Advisor is their expertise and skills in negotiating deals.
Can Both Parties Split the Difference?
One negotiating approach is to have the buyer and seller split the difference if they can’t agree on a number. This approach is easy to understand and shows that both parties that the other is willing to be flexible. This can serve to keep both parties talking. It also lowers any pre-existing tensions and reveals a good degree of goodwill. There is still hope that you can reach a deal when both parties are still at the table. This approach serves to continue the discussions and can often be highly beneficial.
Can the Buyer and Seller Better Understand One Another?
One of the goals in negotiations is for both parties to seek to understand one another. Sometimes a buyer or seller’s needs don’t even involve the numbers on paper. They may be seeking to adjust terms to make them more conducive to their overall goals. It is important for you to keep an open mind and seek to better understand what the other party is ultimately looking for. This can go a long way in making the deal happen.
Can You Bring in a Professional?
A big benefit of bringing in a brokerage professional is that this third party won’t have the same level of emotional investment. They can keep a neutral perspective and be more apt to see things from both sides. A brokerage professional will understand the numerous and complex factors that must be successfully resolved before the deal is finalized. An M&A Advisor will have tips and techniques that can only be gained from years of first hand exposure to making deals happen.