There is no doubt that like selling a house, selling a business can be extremely stressful. Although you’ll need the help of an experienced Atlanta business broker, it’s still important to equip yourself with some vital tips of the trade, so that when the final signatures are put on paper, both you and the buyer will end up happy.
Communication is Key
You, as a seller, must set the tone throughout the entire negotiations, and the best way of doing this is to simply to thoroughly communicate with the perspective buyer. Tell that what you are doing, and exactly why you are doing it.
Take away the risk of there being a skeleton in the closet by giving the purchaser meaningful warranties. This is important because the buyer can’t then use that risk to negotiate a smaller price.
Don’t Show All of Your Cards
It is tempting to tell the purchasers all the good news at the start of the process to get the highest bids. But you might want to hold back some good news to mitigate any bad news that the purchaser finds in the due diligence.
Time is Crucial
By giving the buyer a decent amount of time to assess the opportunity, they will feel much more comfortable that they have a greater understanding of the business as a whole, as well as the sale at hand. Still, if your business remains on the market for too long, employees and customers will become weary, and this is certainly not an asset to the buyer.
It’s your goal as a seller to obtain the best possible balance of risk and reward, relative to the constraint that the other party can always bail on the deal. By comprimising on certain issues, you may win on others.
Get Lots of Rest
Many transaction disagreements are won by the side with the most energy. Make sure you’ve gotten a good night’s sleep before
making any rash business decisions.
Tie Up Loose Ends
There will liekly be a time towards the end of the deal when a bunch of unrelated issues will need to be resolved. To stop this dragging on, try to pull all the final issues together and negotiate them as a single package.
Keep in Contact After the Sale
If problems arise after the sale is completed, it’s often extremely difficult for a buyer to decide to sue a seller if they continue to have a close relationship. A seller who helps a buyer after completion, enhances their own reputation, but also reduces their risk of any comeback under the warranties.