The offer
At purchase of business it is necessary to secure with the external help. If you
already own the company at you communications with workers of bank, with the
bookkeeper and the lawyer are established. If you only start to work, it is
necessary to adjust business relations with the people offering such services.
In any case, the help of such professionals is necessary for protection of your
interests.
The bookkeeper should help to you to consider and estimate financial documents
and to define, how much precisely they reflect process of work of business. The
lawyer should instruct you concerning conditions of sale and make the contract
alongside with the other documentation. The help of employees of bank will be
necessary, if external financing is required to you. The above-stated
professionals also can appear useful, having given data concerning potential
sellers of business and to spread information that you search for an opportunity
to get business.
Before to make the formal offer on purchase, collect more information on the
seller, and that motivates its sale. During gathering the information try to
learn all about activity of the given firm, contracts, licenses, mortgage,
patents, the intellectual rights, duties and so on. You should know in accuracy
with what deal. Do not forget, that the seller simultaneously collects the same
data concerning you and your interests.
After you have carried out research and preliminary discussion with the owner,
you are ready to making the formal offer and to pass to negotiations. Sellers
prefer to not deal with frivolous buyers, therefore be not surprised, if to you
will suggest to bring the mortgage just as it is done during carrying out of
operations with the real estate. After that all are ready to negotiations.
As a rule, at negotiations both parties begin with the maximal and minimal
offers and gradually soften the conditions. You should define in advance the
price and conditions on which you agree to work. Naturally, begin with
conditions more favourable to. Be ready to that the seller will meet your first
offer conditions which you will find unfair. It is an inevitable part of the
tender. If your intentions are serious, work in a direction of conditions which
you agree to accept.
Rigidly hold borders. Having finished negotiations up to the price which, in
your opinion, is real, firmly adhere to it even if the seller tries to break a
course of events. Show resistance to any pressure or unfairly brief terms of
payments. If the seller approves, that the transaction should be necessarily
finished within several days, it is a red signal, and you should show healthy
suspiciousness. On the other hand, the going tightening of negotiations can be
tactics directed on an exhaustion of your patience, and on compulsion to agree
on conditions of the seller. Do not forget, that loss of time is more preferable,
than loss of the capital on to purchase. Be ready to refuse any minute the
transaction which will seem to you doubtful irrespective of, what is the time
and efforts by the given moment it has been spent. On the other hand, be careful
of any offer which seems improbably favourable. The business which is being on
of crash, finally, will not bring anything except for losses.
If you already own the company, you can offer payment of a part or all purchase
by actions of the company. The seller can accept these conditions if there is a
real market for your actions and if they can be at any moment transformed into
cash.
07.05.2007. 16:43
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