Business Negotiation Strategy
No matter if you’re buying or selling a business, you need the temperament and negotiation skills to successfully close the deal. The widely-believed and subscribed-to mentality that one is a good negotiator only when you control the negotiation, push for what you want and ultimately get it – is now passé.
The two parties involved in negotiations are no longer considered adversaries. Rather, they address the issues at hand and work together to settle their differences. The important thing is to treat negotiation as a means of solving problems, where none of the parties involved come out as second best. Also, it’s advisable to let your broker do the negotiations for you as anxiety normally affects your negotiating skills, and you might end up getting a bad deal.
What InCorp can do for you
The good news is that our business brokerage services are in sync with the above-mentioned principles. While every business sale is unique, some universal tips that InCorp adheres to while negotiating on your behalf are as follows:
We prepare well in advance
Prior to beginning negotiations, we study the business, familiarise ourselves with industry statistics and market trends, as well as consult sector experts. This aids our team in backing up your offer as well as preparing any counter-proposals.
We listen to the other party
We believe that giving time to the other party to make their case is always beneficial at the later stage, when the information you gathered forms the basis for your questions. So don’t pre-judge a negotiation, don’t make assumptions and always remember – the winner of a negotiation is the party which walks away with what they want, and not the party who controls the conversation.
We understand what the other side wants
We believe that while negotiating, it’s always helpful to put yourself in your opponent’s shoes. Once you see the deal from their perspective, you can tweak the deal in such a way that your goals seem acceptable to them.
Be flexible and open to options
Our team approaches every negotiation with an open mind, and is flexible to options that may bridge wide disagreements. When we give a concession, we make sure you also get something in return. The gist of our negotiation is to achieve most of your goals through compromise. Thus, we are always willing to listen to alternative proposals.
We keep our eyes on your goals
Even as we listen to the other party and are open to options, we will always keep your goals in mind and prioritise your objectives upfront. While we don’t expect to win every battle, the end result will always be the best-possible deal for you – our team of experts ensures that.
We don’t get emotional, nor do we bully
Being a professional business brokerage services provider, we don’t get emotional with any deal, nor do we bully the opposing party. We believe in carrying out the negotiations on your behalf professionally and amicably.
We deal honestly, openly and never over-negotiate
That’s the key to every negotiation. Our team focusses on building an atmosphere of trust as you will never get a premium deal from a cautious buyer. It is also important to note that you must always stop negotiating when you have achieved your goals, as you might never know when the opposing party is ready to call it quits. Over-negotiating may lead to you losing the deal altogether.
We keep notes of the negotiations
The best chance for a successful negotiation is when there’s no room for ambiguities or evasiveness. That is why our team keeps a well-documented transaction record of the entire negotiation process so as to avoid any misunderstandings at a later stage.
Be always willing to walk away
Keeping all the above in mind, we take a call on the best possible deal you are getting. If we believe that you might get a better deal somewhere else, we might advise you to walk away from the said party. Always remember that to maintain leverage, you must always be willing to walk away from any deal that does not satisfy your basic negotiating position. However, do not use that as a threat – it is your last resort, not a negotiating tool.
The negotiation of an agreement between a business buyer and seller occurs on multiple levels. And InCorp’s team of experts will be at your side at every level. Aside from the pricing and financial terms for the transaction, our negotiating skills and sector knowledge will also help you negotiate favourable secondary transaction components including training, consulting, employment contracts, non-compete agreements, as well as tax allocations.
Plot a successful negotiation strategy with us
With InCorp’s team of expert negotiators, we ensure you’re always on the winning end of a business deal.