How to Achieve High Buyer Success Rates
How to Achieve High Buyer Success Rates
Both buyers and sellers have a lot of emotion wrapped up in their respective decisions. It is completely understandable to feel that way when buying or selling a business. Business Brokers and M&A Advisors can assist clients with their concerns and fears by giving them more information about how the sales process works and by also discussing how to avoid common pitfalls. In this article, we will go over some of the various issues impacting buyers. If you are able to anticipate potential issues that could interfere with the deal, you will be more likely to be able to overcome those issues.
The Initial Intake Process
Buyers should understand that they will need to sign an NDA and treat the non-disclosure process seriously. Brokers representing a seller will be requiring a good deal of information, including financial details, and oftentimes a resume. So do not be surprised when you are asked for this information. It is all a normal part of the process.
The Lending Process
It is additionally important to realize ahead of time that the lending process can be slow. It is also very common for lenders to continually ask for additional information before the loan approval goes through. If this happens to you, there is no need to panic or worry. This is just a standard method of operation and the norm in the industry.
Working with Lawyers
While lawyers are oftentimes necessary in the process of buying and selling a business, they can also be a source of anxiety. In their efforts to protect their clients, lawyers can also “kill a deal”. Of course, get the facts and logistical information that you need from a lawyer if you feel so led. However, always remember that lawyers and other business advisors are not the ultimate decision makers. If you are the one buying a business, the decision is ultimately yours.
The Non-Binding Offer
A non-binding offer allows both the buyer and seller to walk away from a deal if terms cannot be agreed upon within a set amount of time. A non-binding offer shows the seller that the buyer is interested in acquiring the business, but this form of agreement is not legally binding. The benefit of the non-binding offer is that it allows discussions and negotiations to move forward.
The Due Diligence Process
The due diligence process is another aspect that allows the buyer to move forward, while simultaneously having protection. At this point, the buyer will receive confidential and sensitive information about a business, such as the financials, inventory, and legal matters. Buyers will also have the ability to conduct additional research and ask the sellers questions. Like the non-binding offer, the due diligence process also means that you have the right to walk away. It is important to have this step available so that buyers can make the most informed decisions possible.
Business Brokers and M&A advisors are essential in order to help buyers find the best fit. We not only save our buyers time and energy, but we also help to ensure the transfer of ownership goes as smoothly as possible.
Copyright: Business Brokerage Press, Inc.
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