“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” – Winston Churchill
Importance of Having Confidence When Buying or Selling Businesses
Selling or purchasing a business requires confidence. A seller must have the confidence that the price he or she is asking for the business is fair, and the buyer must have the confidence that the price he or she is paying is fair.
The Principals of the Deal Are in Charge
Additionally, both parties must remember that they are in charge of the deal. It is they as the principals who ultimately have to live with the consequences far after the closing, and they must always assert themselves as being in control of the deal when seeking the advice or assistance of any outside parties. Such advice or assistance (from a non-broker) must be weighed properly by the principal and should always be communicated to you before negotiations of the deal commence.
Experienced Business Brokers Have Direct Experience Selling Businesses
- Obtaining legal advice from an attorney or tax advice from an accountant is always a good idea.
- It should be encouraged by every responsible business broker, and certainly is so at Five Star Business Brokers of South Florida. But such professionals – while usually good intentioned – do not normally have direct experience selling businesses.
- Lawyers or accountants do not typically know the realities of the present day market for buying or selling businesses in Palm Beach County. Moreover, they and other ‘advisors’ usually get paid by the hour (by you).
- Asking an attorney if there are problems with a business deal or contract is a bit like asking a barber if you need a haircut..The answer is always YES!
- An intelligent seller or buyer of a business always uses a good dose of common sense and an ability to see the forest from the trees when seeking any outside counsel.
Set Clear Parameters Prior to Dealing with Outside Assistance When Selling Your Business
A successful seller or buyer of a business must – when dealing with outside assistance – set clear parameters in place from the outset. The parameters must be that they are in charge of the deal – no one else (including the broker!). Sellers and buyers must know what contract terms are important to them and why. Buyers must have a clear understanding of what they want to accomplish during the due diligence process, and what can realistically be accomplished during the due diligence process for the specific business they are seeking to purchase.
The Importance of Establishing Trust When Selling Your Business
Sellers must understand that once they sign a Letter of Intent or communicate a counter-offer to a buyer, that the deal will fall apart if they are persuaded by an outside ‘advisor’ to change their minds. Why? Because any business deal ultimately is built on trust. And although a seller may legally change their mind after agreeing to a term but before signing the final contract, doing so will eviscerate any trust on the part of the buyer.
Seller and Buyer Always In Charge of the Offer and Acceptance
The seller should be and always is in charge of what price they will accept for their business, and a buyer should be and always is in charge of what price they are paying for the business.
Take Control of the Deal from the Outset
Seeking legal or accounting advice is perfectly fine and is encouraged at Five Star Business Brokers of South Florida. But such advice should always be given with the caveat that the principals themselves are ultimately in charge, and the advice must be given before either party commences negotiations. New terms can not be injected into a deal at the advice of an expert, or the deal will almost certainly collapse. Take control of the situation from the outset, and figure out what is important to you as the buyer or seller of a business.
Give Martin a call today at 561-827-1181 for a FREE evaluation of your business!