Entrepreneurialism
Buy A Business With This "Plain Vanilla" Negotiating Tactic - And Walk Away The Winner Every Time
One of the "unsexy truths" about buying businesses the way I teach is that there are no hardcore, "super" negotiating skills required. In fact, if you have to resort to any fancy negotiating tricks and techniques then something is wrong.
It's true. Back when we were giving seminars on this subject we actually glossed over this part -- the art of the deal -- mainly because there's nothing to it. It's not like you are going to be in there trying to take over General Motors or something like that.
Instead, if you do things right, you'll be trying to buy a business from a million dollars to twenty five million dollars, max. And when you go in on these kinds of deals (especially if you use investor financing) you?re already in the driver?s seat because you?re the buyer.
You?re the one coming in with the cash. And there?s no great technique because -- again, if you do everything right from the beginning -- you know from pre-analysis the business you?re looking at, market-wise, is worth a certain amount and they?re in the ballpark.
So, when you go in there, you?re just gathering information and you?re seeing what your gut level is. I have been doing this for 50 some years. Do you know how often I?ve "negotiated" a deal? Zero times. And what happens is -- especially in the last ten years -- that many of the sellers of the businesses I buy will stay around and manage the company.
Why will they do this?
Because we become friends. I have not given them a hard time. I have not tried playing "hardball" with them. I want them to stick around and be happy, so I can keep a competent group of people running things.
And you should do the same thing. The whole "trick" is to not go after businesses where they?re in trouble and you?re trying to steal something. Don?t try to go in there and cut a better deal. In other words, be willing to go in there and pay market for it. And if they?re willing to sell for market, then you have a deal. This way, there are no rough negotiations going on and you won't even have to think about it.
Arthur B. Hamel has bought over 200 businesses in the past 50 years, and is a well-known author, consultant, investor, business owner, and dynamic lecturer who has shared the stage with such business greats as Robert Allen of "No Money Down" fame. For the past 20 years Art has taught thousands of people around the world -- even so-called "little guys" with no formal education or money -- how to quickly and easily buy large, multi-million dollar businesses with no credit, banks or prior business experience. He has recently decided to share his unique business-buying secrets and tactics free of charge at: http://arthurhamel.com
Art Hamel
Tags: buy a business, buy sell business, Franchise, business, business plan, business opportunitySimilar articles
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Things should be as simple as possible, but no simpler.
Albert Einstein