If you are considering buying or selling it will involve negotiating the transaction. The key consideration when doing either it has to be a win win situation. Assuming you are an interested party looking to buy then you must consider you want the business, the seller wants to sell and they have in their mind what they deem a fair price.
Having done your due diligence you are at the point where you would like the transaction to complete.
So as a buyer consider the following.
- There maybe other interested parties.
- The seller maybe prepared to provide time to complete a smooth handover.
- The price may already be deemed fair and reasonable.
- There may be none commercial items that become points of negotiation.
If you are a seller consider the implications of the buyer walking away and always be prepared to reduce the price but in favour of committment.
- Reduction based on conclusion by an earlier date.
- Stock initially excluded now included.
- Providing management support either in the form of a handover or documented processes and procedures.
The above are only a few considerations.
Always remember that if either party believes that they did not get something out of the negotiations it will probably mean the sale will not conclude.