The Art Of Negotiation

Not many businesses sell at the asking price

Not many businesses sell at the asking price. Price is a key determinant for the sale of a business. When a business attains the highest value, the owner is motivated to sell it and when the value/price of a business for sale is worth its benefits, the buyer gets enthusiastic about buying it. However while the seller would charge the highest price, buyer would accept business at the least price. So, negotiation is important for the satisfaction of both the parties.

To quote a hiked price a seller might fabricate certain data. So being a buyer you should not fall prey to window dressing and be cautious and skeptical in analyzing the potentiality and worth of the business for sale.

Consider, before buying, the costs involved in routine operations. It would take time for you to understand all the facts and figures of the business and be comfortable in the new atmosphere. You would come across certain challenges and problems when you actually take over the charge. Try to identify these problems before buying the business. Consider them while negotiating the price with the seller. These issues shall not resolve overnight, it would take your time, energy and money. So they must be talked about in detail.

Goodwill of the business must be calculated thoroughly. Dont go on the face value. Find out all truths and take actions accordingly. Be practical in your approach while evaluating the business.

The details of the business must be studied. Confidentiality agreement must be signed so that you can obtain all figures of the business.

You have to base your argument of negotiation of price by highlighting the weak points and problems arising out from your study of the business.

Once you buy the business then theres no turning back. So, analyze all the prospects carefully so that you dont have to regret later.

You can hire a professional business broker to assist you in the process of business valuation. They know the tactics of negotiation as well. They are aware of the market trends and legal interventions. You can handover the task of dealing with the owner of the business for sale to the broker. They have the skills and power to convince with their words of wisdom.

All the above mentioned words go for the buyer. Sellers have to have the art of negotiation in them as well to sell their business faster but at a profitable price. If you are able to convince the buyer about the positive points of the business so well that he manages to accept some negative ones as a part and parcel of a deal, you will manage to strike a good deal. However, dont try to fool a person with falsehood because it wont stay long. You will fall on the face if you are not true in your deal.

I believe after reading my article, you might have been able to understand negotiation from both perspectives and will follow my advice. All the best people!

by: Fiona

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