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Negotiating a Sale

Negotiating a Sale

We are always working for our client and while we have tremendous experience maximizing our position, we never forget that we are the client’s liaison throughout this process.

While we sometimes feel a business is overvalued or undervalued and we will guide our client, we always defer that ultimate decision to them.

When an offer is presented, we at JARBLY always communicate directly with the other party immediately the extent of the communications and the exact offer that is presented by the prospective buyer. While we try to get this in writing, many offers are first presented verbally.

When we receive an offer from a buyer on our client’s behalf, we immediately provide guidance to the client including our assessment, whether it’s strong and they should accept, if there is capacity for negotiations, the likelihood of receiving a better offer, etc. We explore creative ways to get closer to the asking price (or more than asking) through the means of business upside, asset spin-offs, or modification of the sale.

Our guidance is typically very well received by our clients as our sense of trust and loyalty to get the best deal possible emanates through our discussions. We are in the business of a long term strategy, and we know getting the best deal for the client, even if it takes more time, is our best form of business that we look to implement with our transactional experience.

Our job is to present a very accurate valuation and timeline of sale, to curate the leads, and negotiate the best deal possible, expediting the close while making sure there are no complications with the sale and transition.

We approach every deal with a fine tooth comb and a view that there is more value to the business than through the sellers current knowledge by repositioning some critical elements.

When negotiating a deal, understanding how most people approach negotiations is extremely important. Buyers tend to low ball and sellers tend to hold out for their price, unless they are in super liquidation mode and they need the liquidity quickly. We represent our clients in the fashion they’re accustomed to and their style of approaching these types of negotiations.

While both buyers and sellers are trying to get a great deal, most deals do not happen without some form of compromise. The compromise is not always on price and often it’s on surrounding terms. We are very keen to understanding the point of view from the seller and buyer to understand all aspects of the deal and where the position and leverage ultimately is.

The days of trying to squeeze the seller to come down substantially from a realistic asking price, or squeeze the buyer after a legitimate offer, are numbered. Legitimate offers and realistic sellers close deals fast! The seller and buyer going into the deal knowing such, makes these deals close faster.

There are several tactics we deploy to get the maximum value for a sale including positioning of the assets, proper materials and flow, reaching the right buyers, and making sure communications are geared toward the maximum value through timing, prestige, and float.

Our negotiations typically are best when we have flexibility to work with buyers to increase their initial offer up to a realistic price (as many buyers do tend to “feel out” a situation), and to provide guidance on what the best counter move, if any, from the seller is appropriate. Serious buyers will come out with a strong offer right out of the gate. However, the seller has a right to understand the value of the business, communicate it effectively, let us position it appropriately, and hold out for the desired asking price to get the opportunity in the hands of the right buyer. We work for you!

We can’t wait to represent you in a negotiation. Contact us at (800) 773-1523 or projects@jarbly.com to sell your business or represent you in acquiring a business.

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