Solid negotiation skills are key in many facets of life—especially when it comes to buying and selling. If you’re looking at buying an established business, lengthy negotiations are a sure part of your future. In order to get the best deal possible, it’s crucial to formulate a negotiation strategy to guide you as you make decisions around the monumental task of purchasing a business.
Whether or not you consider negotiating to be a personal forte, you’ll benefit from reviewing some time-tested negotiation techniques before you begin the process of buying an established business. Read on for some tips from the professional business brokers at Murphy Business.
Nail Negotiations with these Tips and Techniques
- Consider the whole deal—not just the price tag. Would-be buyers often get caught up on a single number rather than considering the many terms and conditions of the deal in question. Factors like first refusal for future transactions, seller financing, and recourse against the seller in certain circumstances each have a value in their own right. By negotiating terms in addition to price, you and the seller can come to a compromise without sacrificing your top priorities. That being said, it is important to come to the table with a well-researched “walk-away” number to ensure that you don’t stray too far from your comfort zone.
- Be prepared to make concessions. Making concessions can be a strategic move if you do it right. What’s important is that the seller understands that you’re giving up something you believe to be of value. After making this known, you can ask the seller to reciprocate by making a concession of equal value or meeting a certain condition. It’s also key to make concessions over time, not in one go, to stretch their potential for appreciation further.
- Don’t be afraid to make the first offer. While you may think it best to wait for the seller to make an offer that you can counter, you can actually gain a significant advantage by being the first to make an offer. After all, doing so enables you to determine the point around which future negotiations will revolve. Just be sure to do plenty of research before naming a number, or you may make the mistake of overpaying for the business.
- Avoid letting frustration cloud your judgment. If you feel that negotiations are turning into a never-ending process, you could be tempted to settle for a deal you’re not actually happy with. After spending so much time and energy navigating obstacles and making compromises to get to this point, it can be painful to think about walking away empty handed. However, in many cases, that’s simply the best move to make. Keep a clear mind throughout the negotiation process and stay realistic about the possibility of having to walk away.
How the Experienced Negotiators at Murphy Business Can Help
It’s not always wise to jump into the process of buying an established business without any previous experience. At best, you might get a deal; at worst, you’ll be stuck with a dud of a business that you paid too much for. When you turn to Murphy Business, you can have confidence that you’re making business decisions that are in line with your personal and professional goals as well as your budget and the current market.
Not only do we offer access to a wide range of opportunities that you may not find on your own, but we also bring experience and expertise to the table. You can count on us to consult with you in-depth about what you’re looking for in a business purchase before negotiations ever begin. That way, we can help ensure you stick to your priorities as you consider different options.
As we’ll negotiate on your behalf, you won’t have to endure the tunnel vision that often comes with making stressful decisions during what is often an intimidating process. With the ability to maintain perspective, as compromises are made and terms are agreed upon, you’ll increase your chances of finalizing a deal that you’re satisfied with.
If you’re considering buying an established business, it’s best to have experience on your side. Call (888) 561-3243 today to learn more about partnering with a local business broker from Murphy Business.