How to Be a Good Negotiator When Selling Your Business
Posted 22 Dec 15
We have discussed the basic factors which constitute a successful sale when putting your company on the market. Before you make a decision of selling your business, it is important that you consider all the elements which can help you understand the process better.
The simplest way to do so, is by asking yourself a number of questions, such as:
Why do I want to sell my company?
When do I want to make the sale?
Is the current market the best time to sell my business?
What makes my business attractive to a potential buyer?
Knowing the answers to the above questions will allow you to form a helpful and realistic plan. Once you have made a plan, you can start approaching potential buyers. In a previous article, we discussed the factors which make your business attractive.
We explained why it is crucial that your company doesn’t revolve around one individual, such as the owner or a specific employee, or that you don’t put all your energy in developing one product or service. Instead, we suggested you should aim to strengthen the brand your business represent.
It can be especially difficult in times when you are focusing on researching the market and the profiles of potential buyers, so we suggest you hire a professional management team to take care of administrative part of your business.
It is also important that your company’s reputation doesn’t decrease due to unpredicted debts or bad credit or tax score. To make sure you don’t forget about your responsibilities towards Companies House and HMRC, hire a professional and qualified accountant to take the burden of paperwork off you.
At Tawanda Accountants we offer our clients both accounting and business consultancy services, making sure they never have to worry about a missed deadline or lost documents, especially at times so crucial to their companies. Contact us to find out how we can help you prepare your business for a successful sale.
However, when approaching a potential buyer, running a successful business isn’t enough to close the deal. The other thing you will need to focus on is improving your negotiation skills. It might be a daunting prospect, especially to those who run their company from the shadow of their desks, but, creating a professional and friendly environment can be the one step that separates an unsuccessful from a successful sale.
Although you need to be professional and clear when discussing your offer, people value nothing more than a human approach. Listen to your buyer as if you were listening to a friend telling a story. Share your doubts and worries with them in an honest way.
Although the border between professional honesty and a little too friendly approach can seem blur, if you remain focused on the aim of the conversation, you will be able to detect it before it has been crossed.
The sale always involves a compromise from both sides, so prepare yourself to be flexible on certain issues. When planning the price you want to sell your business for, you should have a plan A, B and C in your mind. Remember that finding a perfect buyer is about finding what fits both sides best.
The last important factor is self-belief. A confident salesmen is more likely to make a sale even if his/her product isn’t as good as the person’s who’s doubting themselves. No one will buy your business if you don’t seem passionate about it. Keep in mind the best assets of your company and share your enthusiasm when discussing them.