Create Competition Among Buyers STEP FOUR:
Business owners are often approached by a single buyer. These solicitations can seem harmless. As a seller, the way to maintain and keep power during a transaction is to always have alternatives. Running a process that delivers multiple interested buyers is how a business owner can demand the highest possible valuation. Even if you think you are getting a great valuation from one buyer, there is still a lot of negotiating to be done. Having only one buyer means that it will be difficult to negotiate terms and conditions, which can be just as important as purchase price to the seller. Buyers are always better at buying than sellers are at selling. PRO TIP Don’t talk exclusively to one buyer even if that buyer presents you with an unbelievably good offer. By talking to only one buyer, you are giving away your leverage and things are bound to disintegrate later in the transaction
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