Lucido Global Business Brokers

Lucido Global Business Brokers

Adding Value, Creating Wealth

  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us

Can you Understand Your Buyer’s Key Motivations?

By Rod Burns Oct 11

Negotiations can be tricky affairs. One wrong move can undo a tremendous amount of work. In negotiations, it is best to take a moment and think about where the other party is coming from.

What are their needs and how best can you meet them? Understanding your buyer’s motivation increases the chances of a successful negotiation.

What Appeals to Most Buyers?

When it comes to selling a business, you likely will not know your buyer personally. This means that you will not know what they value most, how exacting their standards will be, and how easy or challenging they will be during negotiations. That’s why it is imperative to err on the side of caution and act in such a way that would appeal to most buyers.

Ensuring that your business is in strong financial health means that your business will be appealing to both a corporate executive as well as an individual buyer with a leadership/managerial background. Keep in mind that individuals who buy businesses will want a strong ROI, and often they will want the responsibilities that accompany that investment to not interfere too greatly with their current lifestyle.

Playing into Emotions

In general, buyers tend to be the most excited at the beginning of the sale process. It is at this point that you can expect your buyer’s passion to be its strongest. As a result, the first stages are when you want to keep your presentation and approach the most realistic. The reason is that once the surge of passion has worn off, your buyer may otherwise feel that you have tried to oversell your business.

Being Forthcoming with Information

It is quite common that you will not at first know if your buyer has previous experience in your market. As a result, you shouldn’t assume that they understand anything about your business or industry. In short, it is definitely in your best interest to be very honest about your business and what is involved in running it. If there are issues that they will invariably discover, then it is best to go ahead and disclose those issues early on as it establishes trust and goodwill.

Understanding Expectations

Another area to consider is what a buyer may expect of you after the sale. A buyer who already possesses a background in your niche would already be very familiar with the ins and outs of your industry. Having you around after the sale may not be viewed as necessary or beneficial.

However, with that said, the exact opposite may also be true. You may be dealing with a buyer who is in dire need of your expertise. These factors could be of critical importance in what you offer your buyer in terms of your availability. Again, that’s why it’s best to not make assumptions and make sure your terms would appeal to a wide variety of backgrounds.

An Investment of Value

Invest the time to understanding your buyer’s motivation. The more you understand what it is that your buyer wants out of the transaction, the greater your chances of focusing on the areas of your business that best match those expectations.

When it comes to the motivations and concerns that prospective buyers may have, a business broker can add a new level of understanding. The value that your broker adds to the process of selling a business is difficult to overstate.

Copyright: Business Brokerage Press

Andreyuu/BigStock.com

Categories: Seller Articles

Prev
Next

Featured Businesses

Subscribe to our Newsletter

No worries, your information is safe with us. We hate spam too!

From Our Blog

5 Ways that Sellers Can Focus on the Positives

January 21, 2023

When you are looking to sell, always focus on the positive aspects of your business. Many business … Read More »

The Top 3 Reasons Why Deals Fall Through

January 14, 2023

No one likes to think about the deals that didn’t succeed. However, the fact of the matter is that … Read More »

The Four Essential Stages of a Closing

January 7, 2023

When it comes to reaching a successful closing, there are four important stages to keep in mind. In … Read More »

Take Inventory of Your Company

December 17, 2022

Most business owners don’t give a second thought to the idea of going to the doctor for an annual … Read More »

5 Elements for Buyers to Investigate

November 19, 2022

When you’re in the process of buying a business, it’s important to stay logical. No matter how good … Read More »

Defending Your Asking Price

November 12, 2022

When you’re putting your business on the market, one of the top considerations is your asking price. … Read More »

Global Business Brokers

Contact Us

Lucido Global Business Brokers
Keller Williams Coral Gables
550 Biltmore Way PH II A-B
Coral Gables, FL 33134
Office (305) 662-7325
Direct (954) 913-5464
rod@globalbusinessbrokers.net

Adding Value, Creating Wealth

  • 5 Ways that Sellers Can Focus on the Positives
  • The Top 3 Reasons Why Deals Fall Through
  • The Four Essential Stages of a Closing
  • Take Inventory of Your Company
  • 5 Elements for Buyers to Investigate

Join Our Team

Copyright © 2023 Lucido Global Business Brokers
MENU
  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us