A Look at the Buy-Sell Process
It will be helpful to take a
detailed look at what happens when a business is bought or sold.
First, consider some of the thoughts that go through the minds of
the buyer and seller during the decision-making process.
the seller
: (Before the transaction ) Shall I sell my
business? What is it worth? How can I find a buyer? (During the
transaction) How much shall I tell this them about my business?
What terms shall I insist on? (After the transaction) Should I
really have sold? I wonder if I could have got more money. Wonder
how the business is getting along.
The buyer: (During the transaction) Shall I buy this
business? I wonder why they really wants to sell. How much can I
afford to pay? Where can I get the rest? How far will they reduce
the price? (After the transaction ) Now that I've bought it, which
new idea shall I try first? Should I have known that would happen?
It's going to work out just fine-isn't it?
These are typical thought patterns. They mark the flow of
decisions in the transaction. They also reflect the doubts and
hesitancy involved in the
decision-making.
Four basic steps
- Rely on a professional to assist you. Most
broadcast brokers have may years and transactions under their
belts. (Experience)
- Have your house in order. Deals have fallen apart at
the signing table due to lack of detail.
- Be realistic and honest with yourself. What you want
for your business, and what you can receive for your business
are sometimes two separate issues.
- Understand your market place. Your broker has many
resources. Resources that enable you to see what your market
offers.
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