Negotiations frequently collapse when the parties remain too far apart to reach agreement.  How can you revive negotiations without weakening your bargaining position? Always break-off negotiations on a friendly note. The fact that you couldn’t reach agreement shouldn’t create a hostile relationship. Leave the door open to re-open negotiations at a later time.

Negotiating a business acquisition follows the basic strategies as negotiating any other transaction – only the stakes are somewhat greater. How can a buyer or seller improve your negotiating techniques? Investigate the sellers (or buyers) position. How motivated are they?  What are the problems or pressure points?  Remember – you bargain from your opponents position,

Legal Positioning When Considering a Sale      Legal positioning of the business has two broad objectives: Sellers oftentimes bring a sale to the point of near completion only to find the sale cannot go through due to legal obstacles.  Therefore, an early goal of the sellers and counsel is to thoroughly review the corporate, contractual,

How much will you offer?      The buyer’s decision to make an offer signals the beginning of negotiations.  As a buyer you must determine the terms of your initial offer; how to communicate it to the seller and how to interpret the seller’s response as the threshold for further negotiations.      The most common question

When buying or selling a business you will have to sharpen your negotiating skills to a fine edge.  The lack of an effective negotiating strategy can greatly influence the price and terms of the business  and may even jeopardize your chances of completing a favorable deal. Creating The Negotiating Climate      Despite the fact that

The approaches to valuation are as varied as the type of transactions.  No one method is suitable for every type of acquisition.  Special situations require their own unique approach Valuing the Insolvent Company:  More than a few insolvent businesses are acquired under Bankruptcy, receivership or foreclosure proceedings for purposes of rehabilitation for continued operation. Although

In strict quantitative terms, return-on-investment controls value.  Many other factors influence it. Thus far, we have been speaking of “value” as the appraisal of what the business is worth.  Value, of course, is not synonymous with price, as the latter simply reflects what the seller either wants for the business or may sell it for. 

  Frequently small business are valued by common – but unreliable formulas that at best are “rule of thumb” procedures.  These conventional yardsticks are convenient to use due to their simplicity, et each falls short as an accurate valuation method because they do not adequately consider valuation in terms of earnings. 1). The Sales Multiplier

Many questions accompany the sale of a business, but few are as important as a question of determining a value for the business. The buyer and seller share much the same problem as each asks: How can the value of the business be determined?  What are the methods for evaluating the business and how do

      In many acquisitions the decisions must be made whether it is preferable to assume the seller’s existing lease or new lease.  It may be better to assume the present lease, provided the present lease has more favorable rents and other concessions than would be anticipated under a new lease; and the present lease