Clients Negotiating their Own Deals
When a client of ours is negotiating during a deal, sometimes they can help and sometimes they can hurt.
The owner knows the most about their business, but there are a few things that happen:
- They are speaking to the buyer almost like they are speaking to a customer of their business. They are looking for two very different things.
- They get caught up in the weeds of many things within their business that they think are valuable that a buyer might not think is valuable.
- They give access to the buyer to get a better deal. When you speak directly to the buyer, you do not have a buffer, you don’t have representation, and therefore, there is no wall to ask for a lower price. Now, they are hoping your compassion overrides the value and gets in the way to agree.
- If you do not have papers, agreements, LOI’s, understand the processes of due diligence, now you seem very inexperienced when asking the buyer for info on such. This gives them. more opportunity to negotiate the price with you.
You might be doing a great job, but if possible, a representative should be more the point people on negotiations just because access to you regarding numbers almost always results in ‘trying to get a deal’ whereas representation puts that wall up a bit. But you’re doing great.
Yes we want him to understand what it’s going to take for a deal.
Some flexibility always helps to get a deal done but let’s see what he can come up with in terms of cash.
If you want a team who can help negotiate a deal for you so that the deal could keep moving forward without complication, please reach out to us.
Let’s hop on a call or get a quick email and see if we can help.
Phone – (800) 773-1523
Email – acquisitions@Jarbly.com
Leader in Acquisitions with Expertise in Representing Sellers & Buyers on Deals
Jarbly is a leader in acquisitions with expertise in helping with listings, negotiations, LOI's, asset purchases, company purchases, and real estate purchases. JARBLY has access to high net worth individuals if you are on the sell-side and businesses that may be of interest to you if you are on the buy-side.