| 1. Make sure your financial records have been | | | | The Negotiation Process |
| kept accurately and in detail. Consider switching to | | | | There are many highly skilled business brokers |
| a computerised accounts system, if you have not | | | | who specialise in buying and selling businesses. It's |
| already done so. Be ready to explain any unusual | | | | best to select a broker with specific experience in |
| figures. | | | | your industry. |
| 2. Ensure that all legal documents relating to your | | | | Negotiating can be stressful, so to make sure that |
| business are up to date and accurate. These may | | | | you get the best possible value for your business, |
| include leases, hire-purchase agreements, client | | | | keep in mind the following points: |
| and supplier contracts, staff contracts, patents, | | | | 1. Be honest, realistic and reasonable when |
| trademarks etc. | | | | negotiating the sale of your business. We all want |
| 3. Target your more obvious weak points and | | | | to buy low and sell high, but a fair market value is |
| bring them up to par with the rest of your | | | | what both sides should aim for. |
| business. This may involve renovating your | | | | 2. Don't hide anything about your business - make |
| business premises, expanding your client base, | | | | sure that any flaws are brought out into the open |
| updating equipment, balancing stock levels etc. | | | | right from the start. |
| 4. Be honest with your staff - let them know | | | | 3. You'll lose the trust of the buyer by being |
| that you're planning to sell, and that you'll do your | | | | dishonest. Be positive - focus on the areas of |
| best to ensure that they can continue with the | | | | agreement, be friendly, and listen carefully to |
| new owners if they wish. At the same time, try | | | | what the buyer tells you. You may be able to |
| and give more responsibility to senior staff | | | | resolve any conflicts before they damage your |
| members - it's best if the business doesn't appear | | | | position. |
| to depend too heavily on your own involvement. | | | | 4. Don't drag out the negotiations - the longer it |
| 5. Prepare detailed information on your business - | | | | takes to come to agreement, the more time the |
| cover everything, such as day-to-day operations, | | | | buyer has to change his or her mind about the |
| information on your competition, relevant industry | | | | deal. |
| information, research and development issues and | | | | 5. Make sure that all agreements are put in writing |
| a history of your business. | | | | and signed by both parties. |