2Bobs—with David C. Baker and Blair Enns What to Ask, Sign, and Share With a Potential Buyer
May 7, 2025
Discover the pivotal role of professional advisors in navigating business negotiations. Learn key questions to ask potential buyers about their motivations and the importance of understanding their strategies. Transparency in financial discussions is crucial, but how can sensitive data be protected? Plus, the unique value of building relationships over shared meals is highlighted to foster trust during negotiations. Equip yourself with essential documents and strategies to lead successful conversations with potential buyers.
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Ask Why Buy and Why You
- Always ask why the buyer wants to acquire a firm and their reason for targeting yours specifically.
- Use their answers as leverage in negotiations to assess fit and seriousness.
Ask About Other Prospects
- Ask who else the buyer is talking to about acquisitions to understand if it's a competitive sale.
- If they won't disclose specifics, ask about the size and type of other firms they consider.
Sign NDA, Avoid Early No-Shop
- Sign a mutual NDA immediately before sharing any materials; never share without one.
- Avoid signing a no-shop clause early as it weakens your negotiating position.