Failure to sell a business

Mark S. (his real name was changed to preserve the client's confidentiality) was so annoyed that he couldn`t sleep. He had been trying unsuccessfully to sell his restaurant for six months.

A large number of investors came to him, but they didn`t accept his overpriced proposals. He didn't want to admit defeat, even though it's been months since the last customer left.

He was angry because this situation interfered with his goals. Mark got married and he had to go to California. He was in a desperate situation. If Mark could not find an investor, then he would not be able to fulfill his dream. His desires for a wealthy and happy life in California with the girl of his dreams will remain only desires.

The problem of the negotiation process

One of the main problems in the negotiation process is the inability to hear the other person. Opposite parties think only about their desires and requirements and are not ready to give in to reach an agreement. The buyer wants to minimize the threshold for entering the business and be able to legally stay in the United States, but the seller wants to get as much as possible by selling his business.

Such a position, where a businessperson thinks only of himself, deprives each of the negotiators of the opportunity to achieve the goal. The buyer loses the opportunity to get a green card, but the seller fails to sell the business.

Problems are a consequence of the fact that the process of selling a business is completely unfamiliar to both parties. The seller is trying to avoid complexity and make handing off easier, so he is reluctant to consider other options. The seller wants to get the most out of his business, is afraid to make mistakes. However, by thinking only about his desires, he complicates everything.

Opportunities to achieve mutually beneficial negotiation results

A seller, you, can start solving the problem by asking your broker for help. Let him explain the buyer's motivation to you. Read more about the role of a broker here.

Your situation will be simplified. This will allow you to see the deal through his eyes. After all, it is much easier to assess from the outside. Moreover, the broker is a professional in his field, and he deliberately analyzes the position of each of the parties. Therefore, his advice is certainly valuable. As a result, during negotiations, you will be able to say: “I understand why you want to buy a business from me and I want to achieve a mutually beneficial result”.

After talking with a broker, you will understand if there are any flaws in your offer. This will allow you to frame your terms in a way that makes them seem more beneficial to the buyer. You may be clear about what exactly you want to achieve as a result of these negotiations, but not be aware of what it looks like for the opposite side. For example, instead of paying in full right away, you can offer the buyer an installment plan for three years. The gradual payment will give the buyer more time, and you will receive full payment with interest on the installment plan.

Moreover, consulting a broker will help you switch. Right now, you might be stuck on a point in your proposal that isn't as important as the rest. As a result, you will be able to achieve your goal - to sell the business profitably for both parties. In doing so, you are pursuing your interests.

Example

Цели покупателя бизнеса 3

Irina was selling a beauty salon.

Selling price - $500,000 (real figures have been changed).

The customer, Maria, was a makeup artist from Edinburgh, a really good contender for a beauty salon owner.

Maria received an inheritance of $400,000. These were her only savings, so that was all she had to offer.

Irina proposed to split the payment as follows: $400,000 Maria pays immediately; $100,000 within two years and 20% of the profits within two years must go to Irina.

It was truly a win-win proposition. Indeed, as a result, Irina received even more than the starting price, and Maria was able to meet the budget and get an E-2 work visa.

The goals of both sides were achieved.

You can learn how to be successful in your negotiations in the sale and purchase of a business from our classes.

To achieve your goal:

  • Instill trust in your customers by understanding their motives.
  • Make sure you can negotiate an agreement that benefits both parties equally.
  • Don't scare customers away by making demands.
  • Find the right balance of mutual interests.

By learning to understand the buyer's position, you can sell your business faster and get more money. It is also important to know how to improve your negotiating position and not fall for manipulation.

Read What Our Clients Say (Google Reviews)

  • Absolutely thrilled with my experience at Florida Buy and Sell and especially working with Alyona! She was professional, courteous, and incredibly knowledgeable, making my business buying transaction smooth and hassle-free. Their expertise and dedication to customer satisfaction really stand out in the industry. Highly recommend for anyone looking to buy or sell business with confidence. A true gem in Florida’s market!
  • I enjoyed working with Alyona Safonova as a business broker, and I cannot recommend her highly enough! Alyona is a true professional with a deep understanding of the market and a talent for finding the perfect match for her clients. She guided me through the entire process with expertise and patience, always available to answer my questions and address my concerns. Her dedication and hard work resulted in a successful sale that exceeded my expectations. If you're looking for a knowledgeable, reliable, and results-driven business broker, look no further than Alyona Safonova! 💼👍
  • I've been dealing with Florida Buy and Sell in my professional capacity as an immigration attorney assisting foreign individuals in buying businesses in the U.S. I can attest to the high degree of diligence displayed by Florida Buy and Sell in all business transactions I witnessed. My primary point of contact, broker Alyona Safonova, has always been responsive to my clients' inquiries and meticulously collected all financial documents necessary for the effective transaction.