Buying a Business - Chapter 7d

In this episode, we continue exploring negotiation techniques used when making an offer to acquire a business. We discuss how psychological principles, such as reciprocity, rapport, and anchoring expectations, can influence negotiations, alongside practical tactics like using data to support your position, mirroring communication styles, and presenting carefully calculated offers. We also look at structuring deals through combinations of upfront payments, deferred payments, or vendor financing, while ensuring the business remains properly capitalised after the purchase. Finally, we emphasise the importance of maintaining a collaborative, win-win mindset, avoiding seller’s remorse, and securing a preliminary agreement before moving forward into the formal due diligence stage.

Mike Knight MBA FCIM Director, MKLINK Ltd