Navigating The Purchase Of A Business That Has Multiple Buyers
Attempting to buy a business that has a number of other potential buyers can create a whirlwind of emotions for a business buyer. On one hand, it is stressful because you need to prove yourself more worthy and qualified than the other buyers to the seller and their broker.
Certainly, it adds more pressure, but preparing for this “issue” when going into any potential business transaction will save you time, stress, and put you ahead of your competition. On the other hand, trying to buy a business that has other buyers should excite you because you have found a business that has garnered a lot of positive attention.
After all, would you want to buy a business that has drawn zero attention from other buyers? This is a good sign that you are probably in the right place. In order to set yourself up for success, you will want to understand how the seller is operating their selling process and determine what is most important to them.
Do not worry about being the highest bidder! Being able to present a well-rounded purchase agreement and negotiate an attractive offer that includes favorable a favorable deal structure, financing, post-sale terms, and timeline that all meet the needs of the seller will far outweigh a slightly higher selling price that lacks favorable terms.
The business buying and selling process can be stressful for all parties, so a seller can find themselves overwhelmed having to deal with more than one buyer. How you conduct yourself and interact with the buyer/broker will make or break your chances of buying this popular business.
Demonstrating your ability to conduct yourself professionally and position yourself ahead of the competition begins before the process does! You will set yourself up for success by taking the time to prepare ahead of time.
Gather your professional team and have them ready to perform quickly, make sure you are pre-qualified before introducing yourself to a potential business that you are interested in buying, and have the ability to move quickly in a deal by having your ducks in a row every step of the way.
The art of striking a deal largely lies on the ability of both parties conducting business in a reasonable and professional manner. If you can also work to find common ground with the other side and be respectful about your differences, you will find that your willingness to work with the seller will go a long way.
If you are able to impress the seller with your professionalism and it ultimately works out into a favorable deal for you, then that may also carry over into the seller being more willing to help you successfully transition after the transaction is complete.