In an industry filled with buyers and sellers, you’d think the buyers always have the upper hand. While this is often the case, there are ways you can improve your status as a buyer – so you end up with a better deal.
Be Realistic and Specific About Your Business’s Needs
Sit down, review your business plan, and inspect it for holes. Talk to your employees to gauge their unique perspectives on how things could go better. Narrow down the type of purchase that fits best for your company’s situation, and specify, in writing, the perfect scenario that will give your business the edge you’ve been looking for.
After you’ve done that, recognize that you may not find the exact proposition you’ve penned on paper. Your goal should be “close enough.” This leeway allows for a realistic search, and you can tweak aspects of the deal, or the purchase once it’s part of your business, to make it better fit your needs.
Get Advice from Professionals
Sure, you have enough awareness about the ins and outs of the transportation industry – but an expert in acquisitions – especially when they specialize in working with buyers and sellers in your business sector, can provide information you may not be aware of. You’ll also have someone you can discuss details with, which is nice when you’re trying to keep the purchase quiet until it’s finalized. Plus, it’s reassuring to know there is someone else looking out for your best interests.
Don’t Bring Emotions into Negotiations
Sometimes, when we set our sights on something we want, we get tunnel vision. This can especially be the case when you’ve hunted for the perfect acquisition for quite some time, and you finally find it. This can lead to excess emotions that can play a role in messing things up during negotiations. Keep a cool head, and always be ready to walk away if talks turn sour. It’s a good idea to follow the lead of your advisor. As an unattached third party, they can be your guide to ensure you get the outcome that sets you up for success.
Be Responsible with Your (New) Employees Interests
Some sellers may be more concerned about their employees than the numbers. This may not be evident in their talks with you, but it may be an underlying cause of stress. Be as generous as possible when discussing the prospect of keeping their team employed. This helps you twofold: the seller may be more willing to negotiate on other aspects of the deal, and you’ll spend less money recruiting new staff. At the same time, don’t provide false hope. If your plans do not include keeping the seller’s team on board, be honest, so they can prepare their staff.
Being a better buyer will set you up to be a better boss as you grow your business. You’ll be in the perfect position to acquire the assets that mean the most to your company’s future. Contact the experts at the Tenney Group for more advice on how you can seize opportunities and grow your business.