Winning Back-Office Strategies to Boost Your Business Agility
VIEWpoint Issue 1 | 2023
2023 Compliance Trends: Staying Ahead in an Evolving Regulatory E...
Business sellers tend to get tunnel vision when it comes to price: They have a number in mind and fixate on it. But if you demand the highest possible amount and refuse to budge during negotiations you’re probably missing the forest for the trees.
On the other hand, if you’re willing to bend on price, you may be able to win substantial concessions on other fronts and ultimately realize a better deal. Such concessions include:
Type of Compensation: You might accept a lower price if it’s delivered in an appealing format such as cash. Or, if you have longer-term investing goals and believe in your buyer’s ability to increase share value, you might lower your price in exchange for stock options.
Extra Protection: You might be more flexible on price if your buyer agrees to some seller-friendly deal protections — for example, substantial financial penalties if the buyer pulls out of the deal after a certain stage.
Lower Taxes: At first glance, your deal’s tax structure may seem like a second-tier priority. But if the proposed structure exposes you to higher taxes, you may be able to negotiate deal terms resulting in more in your pocket post tax by lowering your asking price.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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