Want to Sell?
As a business owner you are probably familiar with negotiating tactics having dealt with customers and vendors for years. However, there is something different about selling your company. Making the decision to sell your business means parting with something extremely emotional and hopefully realizing the value of your most valuable asset. These are incredibly high stakes and make this kind of negotiation rather unique.
When you begin to negotiate the sale of the business, you will be much better off if you have developed a personal plan!
When you begin to negotiate the sale of the business, you will be much better off if you have developed a personal plan. You will need to consider which items in the deal are the most important to you and which items you can compromise on whilst still accomplishing your objectives. Here are some useful tips to remember when developing your negotiation strategy.
- Prioritize which items are most important in the sale. In every business sale there is negotiation where the buyer and seller have some give and take; price isn’t everything.
- Have a ‘walk-away’ number in mind. What is your reserve price if you will, the price you will not go below? This will help you to feel comfortable through the negotiation process.
- Make sure to analyze what the post-sale looks like. Will you have enough money, what will you do with your time?
- Do your homework; know with whom you are negotiating. As a seller it is in your best interests to learn about the prospective buyer before entering into negotiations.
- Do the market research, again it is in your best interests to know what is going on in the market, understand assets and their value. You are less likely to be taken advantage of with this knowledge.
- Keep in mind throughout the negotiating process that it is OK to walk away. This should always be a part of your strategy.
Have a ‘walk-away’ number in mind! Keep in mind throughout the negotiating process that it is OK to walk away.
Really, the best negotiation strategy is to engage a Business Broker to help you navigate the sale process and reach the desired outcome. Murphy Business Boise are experts in this process and offer a plethora of resources to assist you in selling your business successfully and with as little stress as possible. We provide valuation, consulting and exit planning services. Reach out to us here when you are ready to sell. Murphy Business – Boise