
1. Always appoint a chief negotiator
Picture eight partners, each of them responsible for advising dozens of vendors over the years, wanting to demonstrate their finely honed negotiating skills and have their moment of glory. Many private companies have a disparate shareholder base and it is vital for the smooth running of any sale that you mandate one shareholder – or a very small group – to seek the best possible deal. Where shareholders have differing priorities, you should reach an agreement before embarking on the formal discussion with the purchaser. The key is to ensure frequent and clear communication between negotiator and shareholders during the process.2. Prepare for the emotional roller coaster
Although the job of a good adviser is to prepare a client for the ups and downs and shoulder the burden of managing the transaction, no amount of coaching can really prepare you for the emotional highs and lows of selling your business. Being intimately familiar with the sale process and yet not being certain if the sale would go through can be a constant nag at the back of your mind.3. Make sure the deal is right for the business
4. Chemistry is important
You can often tell if a deal is meant to happen right at the very first meeting between buyer and seller. Deals happen – or not- because of the personal chemistry between principals. Purchasers can often come across as arrogant and overbearing. They miss the point that they have a selling job to do too. Equally, vendors can come across as defensive or coy, with unclear motives for selling. It helps when both sides see important benefits from the deal.Share this story