The Art of Negotiating the Buyer and Seller in a Deal
As a broker or intermediary in a transaction the goal is to really understand what gets a deal done.
Sometimes that’s easier than others because it’s more about the deal and the numbers.
Other times it’s much harder because it’s about personality and a persons inner desires and psyche.
When selling a Business is more about the money or buying a Business is more about what’s the multiple and a specific industry, it can become very complicated very quickly.
You would think it’s about the deal and it either makes sense or it doesn’t. Generally speaking, you would think a buyer doesn’t express interest in a business if he didn’t want to buy a business and he wouldn’t express interest in that business if he didn’t want to purchase that business. And he or she definitely wouldn’t move forward with an offer or LOI unless they really wanted it. Equally, a seller wouldn’t want to sell if they weren’t completely intent on exiting and if the right price came along they’d do it in a heart beat.
Well, that can change really fast. Forget market factors for a second which obviously can change a deal. We are talking about psychology when nothing else changes about the business or the market.
A seller can get emotionally attached to the business midway through and not want to let go. They fight fears of what their life might look like around the corner. So even if they get their price or an attractive deal. Now they are internally combatting what’s next.
That could lead to all types of behavior such as playing hard ball. It might be about price. But In reality they might just be scared of what to do next.
The buyer, also, might be hiding intentions or looking for something particular he is not transparent with.
It’s all about translating what the buyer is saying and the seller is saying.
Its’ not just copy and paste what each party says.
It’s about interpreting where the deal is.
And then delivering the right message in the eyes of the buyer or in the eye of the seller based on what each person wants and says.
That’s the art of the deal.
You have to go into the psyche of the person who says what they say and then understand how to convey each message properly.
Sometimes you have to push back on the buyer before relaying to the seller, if you have good reason to with an unreasonable ask that you know in advance the other side will not accept.
Sometimes you have to push back on the seller before relaying to the buyer, if you have good reason to with an unreasonable ask that you know in advance the other side will not accept.
Sometimes you have to get the buyer to come up a little even though the seller wants you to come up a lot. This is not in a simplistic way always. Sometimes the seller counters at $3 million more and your job is to get the buyer up. And if you present $3 million more they just say no.
So how do you keep the deal in play while getting a message across?
This is the art of the deal.
If you want to work together on a deal, we would love to get the opportunity to represent you and see how we can help you. Reach out to us through phone or email.
Phone – (800) 773-1523
Email – [email protected]
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- negotiating a deal
- the art of the deal
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.
- Phone: (800) 773-1523
- Email: [email protected]