Business brokers Orange County understand that selling a business is one of the hardest decisions most of their clients get to make. The reason for this is because business owners are emotionally vested into their business; a business they developed from the ground up. As a result, the work of the broker is to bring the aspect of objectivity. He will help you throughout the sale so that your emotions never get in the way. Even so, when selling a business, it is very important that you learn how to negotiate the contract.
Negotiating with the broker
Negotiations do not only involve negotiating with the buyer but also with the business broker Orange County before you bring him onboard. The mistake most people make is that of hiring a broker without ever considering the terms and conditions they are agreeing to. Prior to committing, you need to go through the contract keenly. This will help you learn more about the roles of your business broker and what your say is. Second, you will have to negotiate on the commission. This can be as low as 4% or as high as 15%. The commission you end up paying will depend on your negotiation power.
Negotiating with the buyer
Now that you are okay with the terms and conditions presented by the business broker Orange County, it is time to move forward to the sale. The broker will bring you qualified buyers who are genuinely interested in your business. At this point, the buyers will want to negotiate further. Although your business broker will help with the negotiations, it is good to understand the key points for negotiations.
- Selling is not just about the price
When negotiating, you shouldn’t just pay attention to the selling price. To make a buyer agree to your set price, you have to give them good reasons why the price is right. The more positive points you give about your business the better.
Nobody wants to deal with a longer settlement. This is an important point you have to tackle when negotiating with a buyer. When a buyer is having difficulty securing finance, they will most definitely request for a longer settlement. Your business brokers Orange County can help tackle this problem by making it easier for buyers to secure financing. If you are in a hurry to leave the company, you will want to negotiate a shorter settlement.
Your negotiating position will be stronger if you promote handover strategies as well as after-sale training that guarantee the smooth running of the business after the sale. Buyers will also want to make sure that you will not end up opening a new business that competes directly with the business you are selling. You must also negotiate on the amount of deposit that the buyers should pay. The deposit is usually more than 10% of the selling price.