Buyer and Seller Relations

Selling and Buying businesses is different than completing real estate transactions. With a real estate transaction a price is agreed to, probably an appraisal is ordered, and maybe an inspection, but there is very little due diligence required. When selling a business there is quite a bit more involved in the due diligence process, financing options, business valuations, legal documentation, and so on.

After closing on a real estate transaction, the seller is gone. However, in a business transaction, the buyer and seller may be working with each other for months preparing for the sale and then additional time working together during a transition.

The relationship developed between the buyer and seller during due diligence and contract negotiations is very critical. Imagine working with a buyer who continually looks for reasons to slow down the process, always tries to find and point out all the negatives associated with the business, refuses to be reasonable on contract negotiations, and is, in general, a pain in the a–.

Not a pretty picture! OH, and now the buyer wants the seller to be grateful for the opportunity to train them? The decision whether or not to sell a business can be a very difficult one to make, and emotions tend to run high. Owners care about their businesses and want the right type of person to take it over. Buyers need to accomplish their business acquisition goal in a diplomatic, engaging, and time focused manner. The seller should be the buyer’s ally!

Use your Apex Business Advisor to assist you during your acquisition.

Doug Hubler
President