If you are a business seller, get ready for a low-ball offer.
It is more than likely that you will get at least one offer that you consider far too low. The key to turning a low-ball offer into a successful sale? Attitude.
It can feel pretty insulting when a complete stranger takes a look at the the business where you’ve invested you blood, sweat and tears and comes back with what you would consider a ridiculously low offer.
Business is an impersonal game, and when you sell your business you will need to take your emotions out of the game if you want to be successful.
Don’t look at a low-ball offer as an insult, look at it as a starting point. The listing price of your business should never be the very minimum that you are willing to take, it too is a starting point for buyers.
The business transaction process is called a process for a reason. There will be a lot of back and forth between the parties involved over everything from the closing date to the bottom line. If you go into the process with the goal of getting to the closing table, you will be far more successful than if you go in with the attitude that everything must go your way. Also realize that not all buyers are going to think that coming in too low would offend a seller, so keep a good-faith attitude throughout the process about the other side.
Once the initial offer is in play, you can begin the process of negotiating for a price that is acceptable for both parties. This is a great time to be using the services of a business broker because they can do the impersonal negotiating for you.
During these initial negotiations you will be able to tell pretty quickly if what you have is a serious buyer who is truly motivated to buy your business. If they are a serious buyer, they will be inclined to back up their offer with the reasoning they used to arrive at that price, and will be willing to meet you somewhere in the middle. If they aren’t, then you can move on.
Again, it is critically important that you treat all offers, at least initially, as serious offers and that you deal with all parts of the business selling process without getting your emotions involved. Keep you eye on the goal of getting to that closing table and you will have a much more successful transaction.
Are you a business seller who keeps getting low-ball offers? Are you having a hard time staying objective? Please feel free to leave us a comment or question here, and we will be happy to help you get to the closing table successfully.
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907