Staying strong for the negotiation table

Transcript

How does the negotiation process work?

The way the negotiation process works is very much a team effort between us and our clients. It's important to understand that often the people we're acting for have taken a lifetime, maybe in the case of family businesses, several lifetimes in order to build up this asset, it's very important we work with them to get the best possible result. Negotiating processes are complicated, the key from our perspective is to make sure a buyer always understands that you have other options. You must keep them sufficiently interested in order to carry on a negotiation but they must feel sufficiently uncertain of their position so that they never actually know what happens if they do not give you what you want. They must always feel that they can lose the deal.

Negotiation is not necessarily a directly confrontational process there is sometimes a perception that it's all about aggression and table thumping and there is occasionally a role for those things but more often than not, negotiation is an exercise in seduction and persuasion. Our job is to persuade the buyer to do the things we want to do in order to get the best possible deal for our clients that is essentially our skill set.

How important is information in the negotiation process?

The information is critical in a negotiation process, how and when your release information is key to successfully negotiating with a potential buyer and it's important to remember the information in the wrong hands can be dangerous. Part of our role is to protect a business through the sale process by controlling the release of information to the right people at the right time and in the right way. Controlling the release of information and exploiting its value is a critical part of what we do.

What is up for negotiation?

The reality is everything is up for negotiation in a sale, buyers will tell you at some point or other that things are this point is non-negotiable, nothing is non-negotiable but the price of winning some points is much higher than others. Key to any successful negotiation is understanding the things that are important to the buyer, understanding the things that are important to you, and trying to win all of your points at relatively little cost and that's really where we come in.

Contact us to discuss your exit strategy.