{"id":561205,"date":"2012-06-27T03:18:54","date_gmt":"2012-06-27T07:18:54","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/the-three-ways-negotiate\/"},"modified":"2022-01-31T12:44:38","modified_gmt":"2022-01-31T17:44:38","slug":"the-three-ways-negotiate","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/the-three-ways-negotiate\/","title":{"rendered":"The Three Ways to Negotiate"},"content":{"rendered":"
\n

Basically, there are three major negotiation methods.<\/p>\n

1.\u00a0Take it or leave it.<\/strong><\/b> A buyer makes an offer or a seller makes a counter-offer \u2013 both sides can let the \u201cchips fall where they may.\u201d<\/p>\n

2.\u00a0Split the difference. <\/strong><\/b>The buyer and seller, one or the other, or both, decide to split the difference between what the buyer is willing to offer and what the seller is willing to accept. A real oversimplification, but often used.<\/p>\n

3.\u00a0This for that.<\/strong><\/b> Both buyer and seller have to find out what is important to each.\u00a0 So many of these important areas are non-monetary and involve personal things such as allowing the owner\u2019s son to continue employment with the firm.\u00a0 The buyer may want to move the business.<\/p>\n

There is an old adage that advises, \u201cNever negotiate your own deal!\u201d<\/p>\n

The first thing both sides have to decide on is who will represent them.\u00a0 Will they have their attorney, their intermediary or will they go it alone?\u00a0 Intermediaries are a good choice for a seller.\u00a0 They have done it before, are good advocates for their side and they understand the company and the seller.<\/p>\n

How do the parties get together in a win-win negotiation?\u00a0 The first step is for both sides to work with their advisors to settle on the price and deal structure positions.\u00a0 Both sides should be able to present their side of these issues.\u00a0 Which is more important \u2013 price or terms, or non-monetary items?<\/p>\n

Information is vital to a buyer.\u00a0 Buyers should keep in mind that the seller knows more about the business than he or she does.\u00a0 Both buyer and seller need to anticipate what is important to the other and keep that in mind when discussing the deal.\u00a0 Buyer and seller should do due diligence on each other. Both buyer and seller must be able to walk away from a deal that is just not going to work.<\/p>\n

Bob Woolf, the famous sports agent said in his book, Friendly Persuasion: My Life as a Negotiator<\/em>, \u201cI never think of negotiating against anyone.\u00a0 I work with people to come to an agreement.\u00a0 Deals are put together.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Basically, there are three major negotiation methods. 1.\u00a0Take it or leave it. A buyer makes an offer or a seller makes a counter-offer \u2013 both sides can let the \u201cchips fall where they may.\u201d 2.\u00a0Split the difference. The buyer and seller, one or the other, or both, decide to split the difference between what the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-561205","post","type-post","status-publish","format-standard","hentry","category-selling-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=561205"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/561205\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=561205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=561205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=561205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}