Posted by: bizsale | October 14, 2008

Using Business Broker as Scape Goat / Bearer of Bad News

One of the benefits of using a broker that some prospective business sellers don’t realize is the ability to have the business broker be more aggressive in negotiations while the seller preserves a positive relationship with the buyer – which is essential to get the deal done.

In one recent transaction I was involved with the buyer was being very unreasonable on a few items being negotiated in the purchase agreement. I was able to insist on changes and appear to be driving those efforts. The buyer was very upset with me despite the fact that I believe his positions were irrational. Had the seller been the only person negotiating the terms and had been as forceful as I was, I believe it would have had the potential of jeopardizing the deal. Instead, we were able to get to a point of agreement, and the seller was able to patch up any hard feelings by saying to the buyer, “that darn broker of mine. I know he is looking out for my interests and I feel like I need to follow his advice, but I can give a little on a few of the issues.” Without my third party involvement I believe my client wouldn’t have succeeded in finalizing the deal.

Codiligent Business Brokers – Portland, Oregon based business brokers representing sellers of businesses with $500k – $20 million in annual revenue. To schedule a free consultation to discuss the possible sale of your business you may contact Eric Williams at 503-535-8817 or E@codiligent.com


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