By Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation
This is the 5th of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week
Perhaps too much has been written about elaborate or indirect negotiating techniques in business situations. At least in the case of acquisitions, we espouse a direct, problem-solving oriented approach. This builds trust between buyer and seller and allows for resolution of key issues.
Thorough understanding of the seller’s motives and details about his or her company and industry will aid your negotiating ability. You should thoroughly understand the prospective company, including the likely risks and potential problems you might encounter if you take over ownership. Further, you should be able to present such concerns in a way that the seller will find believable and will be able to accept.
Continue reading Negotiating to Buy a company: A Summary
This is the 1st of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week
Buying a company is by far one of the most complex purchase activities most individuals ever undertake. A far broader array of skills and knowledge is required than for any other purchase, certainly much more so than purchasing a house or an automobile. And although an infrastructure exists, the prospective buyer is expected to be familiar with many of the rules of the game before undertaking such a venture or he or she won’t be taken seriously. Fair or not, age provides a rough yardstick by which many prospective buyers are initially measured by the broker and banking community. Younger buyers must overcome issues of credibility. Senior buyers must deal with the concern that they lack the energy and/or are too close to retirement to take the project seriously and must overcome their own hesitancy to start over with a new company. In spite of these obstacles, adults in a very wide range of ages successfully purchase and run their own companies. Strong drive or desire, among all the personal characteristics is perhaps the single, most important ingredient in assuring their success.
Reference: “How to Acquire the Right Business”
by John Psarouthakis and Lorraine Uhlaner
By First Sun Team,
First Sun Consulting, LLC has provided corporate outplacement/career transition services/programs for transitioning employees during cost cutting/retirement/non-fit.
You Can’t Expect Negotiations with the French to be Like Negotiations with Americans
For the Diagrams and comments got to: http://bit.ly/1NQNudy