Keeping Your Composure is Critical When Selling a Business

Sometimes people let their emotions get theLosing your head may simply make any legal
better of them during a business negotiation. Thisfooting you have go away very easily. Talk to
is especially true when a business deal falls apartyour lawyer and play everything by the book.
or the other party acts irrationally. If you own aWhat to Do When The Other Party Gets
small business and find yourself in a situationContentious?
where the sale of your business falls off the- Follow the advice of your legal representative.
tracks, so to speak, remember to stayAlways remember that an agreement to sell a
composed.business is a legal contract, so treat it as such.
This article will deal with some tips to help you- Do not talk directly to the buyer, unless you are
maintain your focus in a contentious situation andadvised to do so This may only make a bad
also some possible consequences (and costs) thatsituation worse. Go through the law firms or your
may be incurred by you if you do not.business broker if it makes sense.
Possible Negative Outcomes to an Owner Who- Do not take it personally. People can let
Loses Patience in a Small Business Saleemotions get the better of them, especially when
When a business is sold and a "firm" deal isthere is money involved.
agreed upon by two parties, they have essentially- Do not break any rules - even if the other side
agreed to enter into a binding contractualhas. It is always recommended that you follow an
agreement. Certain actions may be required fromethical course of action. Two wrongs certainly do
the parties. When a deal comes into jeopardy it isnot make a right.
important that you, firstly, follow the advice ofEveryone always hopes for a smooth outcome
your legal counsel, and secondly, that you do notwhen a small business is sold. The reality is that a
take it personally. It is business, after all.business sale transaction is unlike a real estate
An simple example is a situation where a buyerpurchase so most people are not ready for it.
does not follow through on closing day with theThere are many deal points that need to be
funds, and there is a real cost to you as a seller.agreed upon by two sides and since there are so
While it may be tempting to call the buyer directlymany moving pieces to a typical deal, there are
and be confrontational, it is probably better youthat many more chances for mistakes to be
not. Consider the consequences. Perhaps yourmade.
actions may be interpreted a certain way by theIt is recommended that you retain the services
other side and that causes reason for a breach ofof a professional business brokerage before you
contract. If there is any money being held by alist your business for sale and also to work with a
third-party in escrow, you want to have recourselaw firm that has significant experience in small
to at least that money, if not the entire amount.business sales.