In the latest episode of the Business Buying Strategies podcast, Jonathan Jay reveals the psychology of the buyer and seller during any negotiation for the acquisition of a business.
Business acquisition negotiations are primarily a psychological game, with the party who has more information carrying an advantage.
Understanding how the vendor thinks from the start of a negotiation and through the various stages of a discussion is essential to building the trust and rapport needed to ensure an open conversation.
Ultimately, the goal is to discover the motivation of the seller for having the conversation in the first place and working with them to find an exit that works for both parties.
Listen to the episode to gain an insight into the mind of the seller before your next negotiation.
Listen and discover…
Here are the key highlights:
01:50 The psychology of buying and selling businesses 04:03 Understanding the seller's emotions and hopes 06:17 The value in knowing buyer's fears and motivations 06:58 The importance of understanding motivation 11:47 Strategies for successful business buying 22:26 First impressions and negotiation tactics 35:32 How to use this information in your next negotiation
Here is what you will discover…
- Why you need to be aware of your own motivations before engaging with a seller (to understand what you need from a conversation)
- The reason why so many vendors have unrealistic valuations (and what to do about it to secure a great deal)
- Why knowing more than the other party in a negotiation gives you an advantage (and how to avoid losing the ‘information game’)
- Why you will lose any chance of a good deal if you turn into a motivated buyer (avoid this at all costs)
- The No.1 reason why you need to avoid dealing with business brokers (on your first deal, at least)
** Looking for a great acquisition lawyer in the UK? Use mine! **
If you are looking for a lawyer in the UK to help you get the deal over the line, then use my own lawyer, John Andrews. You can phone his office at (0345) 2412494 or email him at johnandrews.deallawyer@jmw.co.uk.
Ready to get started?
Here’s how you can start your business buying journey…
Download our free Business Buying Toolkit
https://dealmakers.co.uk/business-buying-toolkit
Join our Business Acquisition FastTrack programme
https://www.dealmakers.co.uk/fast
Already bought a business?
if you've already bought a business, you should be part of my Inner Circle group where we discuss raising capital, integration management, and exiting. Email Maria on hello@thedealmakersacademy.com for more information.
Business Buying Strategies from The Dealmaker's Academy