The Secrets of Successful Business Negotiations Revealed
When you begin thinking about selling your business, consider there is way more to the process than finding the right buyer and upfront price. You want to get the best deal, and business brokers can help you uncover the secrets to winning negotiations.
Negotiating is a skilled process that uses a collaborative approach to reach a win-win outcome for you and your buyer. Effectively negotiating your deal can be the difference between walking away with a satisfactory deal or a great deal.
Business brokers have deep knowledge about businesses and years of experience negotiating deals that get you to the closing table faster and at the price you want.
Here are the secrets to successful business negotiations.
What Is a Business Negotiation?
A business negotiation is a process where you and one or more parties are trying to agree on terms of a deal, such as selling your business. The preferable outcome is for the agreement to be mutually beneficial to you and your buyer.
The Secrets Business Brokers Use to Negotiate
Getting to a favorable agreement for both sides requires communication, compromise, and understanding of what each of you wants. The key elements of negotiating a deal that business brokers can help you with include:
Being prepared
Understanding what your buyer wants
Keying on finding mutual ground
Listening intently
Building rapport
Having a best alternative to a negotiated agreement (BATNA)
Staying flexible
Presenting more than one option
Managing your emotions
What holds all this together for you is understanding the value of your business. Business brokers can handle business valuation from beginning to end and can help guide you to finding value in your company.
Start Working With Business Brokers Early to Value Your Company
Analyze your financial statements, such as your profit and loss statement, balance sheet, and cash flow statement. Review projections for future profits and your business plan.
Gauging the value of your business before going into negotiating gives you the best chance of understanding what you should get out of the deal and helps you learn what your buyer needs.
Key Elements of a Successful Negotiation
Knowing the value of your business can prepare you to stick to your key points, communicate, manage your time, make concessions, and be prepared to walk away if necessary. Consider these key steps:
Understand Your Goals and Priorities
Outline what you want to accomplish and what you’re willing to compromise on.
Research Your Buyer
Know what the buyer is looking for and be prepared to meet that need.
Prepare a Plan B
This is your BATNA. Knowing you have an alternative gives you leverage.
Stay Focused on Your Interests
Try to understand the buyer’s demands, consider options, and adapt your position to seek out solutions.
Think Long Term
You want to arrive at the best deal possible, but consider the possibility that you may have future interactions with your buyer.
Taking on experienced business brokers can prepare you to negotiate a great deal for selling your business or to walk away and prepare for the next deal.
Business Brokers Bring Value to Negotiations
Good business brokers have negotiated hundreds of deals and understand businesses across many industries. Pulling business brokers into your team early — when you first begin thinking about selling — can add value to your negotiations to get you the deal you want at the price you want.