Many prospective business sellers and buyers overlook how important negotiations can be. Negotiations can also be tricky. Before the time to buy or sell, think through your negotiation strategies. Here are some easy ways to negotiate.
Negotiation Tactic #1 – Take It or Leave It
Using this negotiating tactic, the buyer makes an offer and the seller makes a counter-offer. Both sides leave it there. Either the deal works or it doesn’t.
You should step back and ask yourself if you are comfortable with this approach. It sometimes takes a small degree of flexibility to turn a proposed deal into a reality.
Negotiation Tactic #2 – Consider Splitting The Difference
Another negotiating tactic is to offer to split the difference. This tactic demonstrates a good deal of flexibility. However, the financials may not always make sense for both sides.
It is important to think about all the factors involved in allowing a deal to fall apart. Showing a willingness to split the difference is often seen as a goodwill offer. This can help further negotiations. You can reach a deal, as long as the two sides are talking. The deal is definitely finished when communication ceases.
Negotiation Tactic #3 – Negotiation From What Is Most Important To Each Party
Understanding what is most important to both parties is critical for a successful deal. Important areas can range from moving the business to a new location to allowing a relative to stay with the business. It is important to understand that not all key points are directly linked to money.
Negotiation Tactic #4 – Bring In A Pro
It is important that you never negotiate your own deal. When it comes to selling or buying a business, emotions can run high. Sellers and buyers often lack the perspective that an outsider can bring. Deciding to ask for help and guidance can be a huge step in the right direction.
EBIT Associates can help you establish a fair price and address the array of intangibles that can go into selling and buying a business.