Be flexible on terms

How many deals have you seen fall through because one party or the other remained inflexible on the terms of the transaction? I’ll bet you’ve seen a few. Keep those lessons in mind when you negotiate terms of the sale of your business to a potential buyer. How to Sell Your Privately Owned Company has a few tips toward that end:

Rest assured

The best remedy for assuring a successful deal is to minimize the risks. This can be done by working through a careful and documented sales plan that allows you – as the seller – to establish the price while being flexible with the terms. If you realize that the terms are really what drives (and closes) the sale, you will be further ahead on achieving your long-term goals, regardless if they relate to financial success or just a peaceful night’s rest.
The flexibility of the sales terms usually means your willingness to accept multiple forms of payment from the buyer.

That’s why most deals happen somewhere in between the fantasies of the buyer and the dreams of the seller. And in many cases, this happy medium is struck through at least partial owner financing. In plain talk – you play the role of “banker.”

Copyright © MMIX by ERV Productions Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a data base or retrieval system, without prior written permission of the publisher.

Eric R. Voth has been a successful business owner and seller since the 1970s. Among other enterprises, he is currently owner of ERV Productions Inc., and author of How to Sell Your Privately Owned Company.

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