Know when to fold ‘em…
Wednesday, May 9, 2007/
As the failed Qantas takeover bid demonstrated this week, not every deal goes ahead. Don’t forget your goals in the rush of the sale process.
As the failed Qantas takeover bid demonstrated this week, not every deal goes ahead. Those involved will have different reactions depending on how far progressed the negotiations have become and how much time and effort has been put into the deal.
Some will be relieved, others will be annoyed, just about everyone will be feeling a bit flat, and this is one of the issues that needs to be managed when you are looking at buying or selling a business.
As a potential buyer, one of the trigger points for commencing negotiation on a business for sale is being able to establish a vision of the business being part of your future.
The longer you are involved in reviewing the business and arranging the purchase, the more real that future will seem to you. It is therefore very important to have established a checklist of must-haves and nice-to-haves before starting the process, so that you can constantly refer back to them. This will help you keep the negotiations in perspective and keep you in touch with when it is appropriate for you to walk away.
As business owner with your business on the market, it is equally important to ensure you keep some perspective. One of the keys to success in life and business is a belief that what you are doing is important.
As a business owner this often translates into a passion for every aspect of the business. A prospective buyer will have their own vision and passion for the business, which may be quite different to yours.
It is important to allow yourself to “let go” so that you can remain focused on whether the deal represents fair market value and will enable you to move on to the next stage of your life.
Business advisers and business brokers can be very useful in this regard. Not only can they do most of the arm-wrestling on your behalf, but they can also screen out the personal issues of both parties from the negotiations. There are brokers that can assist you to sell your business.
If you have had any personal experience in buying or selling a business that relates to this topic please share it with us.
Andrew Kent is a director of BizExchange, an independent marketplace for business for sale or seeking investment. BizExchange has a directory of independent advisers and business brokers and information on valuations