As I am working on several year-end transactions and stress mounts, I’m reminded of a past transaction that involved two parties who were eager to make a deal happen but became paralyzed at a crucial point by fear — not fear of each other, but fear of losing the deal. Neither side could bring itself to trust or empathize with the other. As a result, vapor lock ensued, and the deal died even after numerous issues they confronted resolved.
The fears of the parties doomed this deal. It was too far along and would have required at least one party to travel well outside its comfort zone, but what could have been done earlier in the process to change the fear dynamic that killed the deal?
Confronting the Fear of Losing a Deal
When I work on transactions, I quickly work to identify deal breakers. I notice them during initial client meetings and phone calls and as I
You own a car dealership, and you want to sell it. Of course, you want to get the best price and terms possible. The question is, how? In my previous post, Top 5 Do’s When Negotiating the Sale of an Auto Dealership, I presented the five best practices to negotiate the sale of a car dealership and get everything (or nearly everything) you want. In this post, I help you steer clear of common pitfalls that can sink the deal or keep you from getting what you really want out of it.
1) Don’t hide from the reality of what your company is.
The strengths of your auto dealership are easy to see, because the dealership is your business and you have put your heart and soul into it. What is more difficult is to see what may not be working as well as it could, or areas where your business is challenged. Challenges may be limitations in terms of personnel, location, business environment, or even personal bias.
Since prospective buyers will
You own a car dealership, and you want to sell it. Of course, you want to get the best price and terms possible. The question is, how? Here, I present five best practices to negotiate the sale of a car dealership and get everything (or nearly everything) you want.
1) Take an Honest Look at Your Dealership
Before telling anyone that you are thinking about selling your dealership, scrutinize it from the perspective of a potential buyer. You will be dealing with prospective buyers whose prime objective is to point out everything that is wrong with your dealership in an effort to justify paying less for it. Evaluate your dealership honestly and fix the problems or at least prepare a response to issues that will likely be pointed out during negotiations.
2) Know What You Want
Understand your ultimate objective. That’s easy, right? To get the most money. Well, price maximization is certainly a major consideration and is perhaps the
Welcome! I’m hosting this blog to provoke thought and create discussion around various topics that are part of my professional life.
The purpose is not to provide legal or business advice. Instead, my posts will: