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.