Three Easy & Effective Ways to Negotiate

Far too many prospective business buyers and sellers overlook just how important negotiations can be. But they can also be tricky. In general, there are three approaches to negotiations. Thinking through your negotiation strategies well before the time to buy or sell is a savvy and prudent move.

Negotiation Tactic #1 Take It or Just Leave It

In this negotiating tactic, the buyer makes an offer and the seller makes a counter-offer, then both sides leave it there. If the deal works fine. If it doesn't work, that's fine too.

It is usually smart to step back and ask yourself if you are comfortable with this approach. Sometimes a small degree of flexibility can go a long way towards turning a proposed deal into a reality.

Negotiation Tactic #2 Maybe Consider Splitting the Difference

Another negotiating tactic is to simply offer to split the difference. This tactic is pretty straightforward and it demonstrates a good deal of flexibility; however, the financials may not always make sense for both sides.

As always, it is important to think about all the factors involved in allowing a deal to fall apart, such as how much time will it take to find another buyer or another business to buy? Showing a willingness to split the difference is often seen as a goodwill offer that can facilitate further negotiations within an environment of lower emotional intensity.

Remember, as long as the two sides are talking, a deal may be reached. But when communication ceases, then the deal is definitely finished and not in a good way.

Negotiation Tactic #3 Negotiation from What is Most Important to Each Party

Understanding what is most important to both parties is usually critical for a successful deal. Important areas can range from allowing a relative to stay with the business to moving the business to a new location. Not all key points are directly linked to money, and it is vital to understand this all-important negotiating fact.

Negotiation Tactic #4 Bring in a Pro

In negotiations there is an old adage, “Never negotiate your own deal.” Emotions can run high when it comes to buying or selling a business and then there is the problem of perspective. Buyers and sellers are often lack the perspective that an outsider can bring.

Opting for help and guidance from someone who buys and sells businesses for a living, can be a huge step in the right direction. Through a professional business broker, it is possible to not only establish a fair price but also address the array of intangibles that can go into buying and selling a business.
At the end of the day, deals are put together piece by piece, and skill is involved in the process. Working with others is at the heart of successful negotiation, and that means taking into consideration what the other side wants and what the other side needs.

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Buying? Selling? Seven Key Points to Consider

Buying or selling a business is one of the most important decisions that most people ever make. Before jumping in, there are several points that should be taken into consideration. Let's take a moment to examine some of the key points involved in buying or selling a business.

Factor #1 - What are You Selling?

Whether buying or selling a business it is important to ask a few simple questions. What is for sale? What is not included with the buyer's investment? Does the sale price include any real estate? Are vital assets, such as machinery, included in the sale price?

Factor # 2 - What are the Range of Assets?

It is very important to understand the range of assets that are included with a business. What is proprietary? Are there formulations, patents and software involved? These types of assets are often the core of the business and will be essential for its long-term success.

Factor # 3 - Evaluating Assets for Profitability

Not all assets are created equally. If assets are not earning money or are too expensive to maintain, then they should probably be sold. Determining which assets are a “drag” on a business's bottom line takes due diligence and a degree of focus, but it is an important step and one that shouldn't be overlooked.

Factor # 4 - Determining Competitive Advantage

What gives a business a competitive advantage? And for those looking to sell a business, if your business doesn't have a competitive advantage, what can you do to give it an advantage? Buyers should understand where a business's competitive advantage lies and how they can best exploit that advantage moving forward.

Factor # 5 - How Can the Business Be Grown?

Both buyers and sellers alike should strive to determine how a business can be grown. Sellers don't necessarily need to have implemented business growth strategies upon placing a business up for sale, but they should be prepared to provide prospective buyers with ideas and potential strategies. If a business can't be grown this is, of course, a factor that should be weighed very carefully.

Factor # 6 - Working Capital

Some businesses are far more capital intensive than others. Understand how much working capital you'll need to run any prospective business.

Factor # 7 - Management Depth

Businesses are only as good as their people. It is important to ask just how deep your management team is, how experienced that team is and what you can expect from that team. How dependent is the business on the owner or manager? If the business may fall apart upon the leaving of the owner or a manager, then this is a fact you need to know.

Buying or selling a business is often more complex than people initially believe. There are many variables that must be taken into consideration, including a range of other factors not discussed in this article ranging from how financial reporting is undertaken to barriers of entry, labor relationships and more. Due diligence, asking the right questions and patience are all key in making your business a more attractive asset to buyers or for finding the right business for you.

http://procisionbb.com/buying-selling-seven-key-points-to-consider/

There’s No Business Quite Like a Family Business

The simple fact is that family businesses are different. After all, a family business means working with family and all the good and bad that comes with it.

While an estimated 80% to 90% of all businesses are family owned, relatively few are properly planning for what happens when it comes time to sell. According to one study, a whopping 72% of family businesses lack a developed succession plan which is, of course, a recipe for confusion and potentially disaster. Additionally, there are many complicating factors, for example, studies indicate that 40% to 60% of owners of family businesses want the business to remain in the family, but only 40% of businesses are passed to a second generation and a mere 10% are passed down to a third generation.

Let's turn our attention to a few of the key points that family business owners should consider when selling a business.

1. Confidentiality should be placed at the top of your “to do” list. When it comes to selling a family business, it is vital that confidential is strictly observed.
2. Remember that it may be necessary to lower your asking price if maintaining the jobs of family members is a key concern for you.
3. Family members who stay on after the sale of the business must realize that they will no longer be in charge. In other words, after the sale of the business the power dynamic will be radically different, meaning that family members will now have to answer to new management, outside investors and an outside board of directors.
4. Family members will want to appoint a single family member to speak for them in the negotiation process. A failure to appoint a family member could lead to confusion, poor decision making and ultimately the destruction of deals.
5. When hiring a team to help you with selling your business, it is critical that your lawyer, accountant and business broker are all experienced and proven.
6. Don't hold meetings with potential buyers on-site.
7. Every family member, regardless of whether they are an employee or an investor, must be in agreement regarding the sale of the company. Again, one of your primary goals is to avoid confusion.
8. Family employees and family investors must be in agreement regarding the sale price or there could be problems.

Working with an experienced business broker is a savvy move, especially when it comes to selling a family business. Business brokers know what it takes to make deals happen. Being able to point to a business brokers' past success will help reduce family member resistance to adopting the strategies necessary to successfully sell a business.

http://procisionbb.com/theres-no-business-quite-like-a-family-business/

Crescent Business Center For Lease by Procision Commercial Realty

Great for Office, Light Assembly, Engineering and Many Other Uses.
The Business Center is located on the North bound side of US Route 130 in Pennsauken, New Jersey. The park is located within a half mile from the Betsy Ross Bridge and has easy access to the Betsy Ross Bridge, Tacony-Palmyra Bridge, US Route 130, RT 73, I-295, and the NJ Turnpike.

The highlights of the opportunity are as follows:

• Up to 19,964 sq.ft.
• Street Signage on Route 130
• 100% Drop Ceiling Air-Conditioned
• Recent Renovated
• Office Furniture Available
  
• Ample Parking
• One Tailgate Loading Dock

For More Info or to schedule an inspection, please contact:
Richard Shore
856.228.5151 x 4
rshore@procisionbb.com

http://procisionbb.com/crescent-business-center-lease-procision-commercial-realty/

FOR SALE - CHECK CASHING BUSINESS BUCKS COUNTY, PA

Simple and Consistent Business for Sale - This well-established Check Cashing Franchise is ideally positioned in a densely populated suburban location with limited competition and advantageous demographics. The Business has been in operation for close to 20 years and has developed a varied customer base that includes both individuals and numerous business clients from the surrounding areas. Currently, services primarily include check cashing, electronic bill payment, money orders and wire transfers. Although the current business offers a profitable and consistent income, there is the opportunity to establish additional profit centers. A new owner can augment the current business with various additional lines of service and grow the existing stable income stream. This is a completely turn-key operation that offers Franchise support, established protocols and a professional setup that has been refined over the years. In addition to Franchise training, the current owner is willing to provide in-depth training to the Buyer.
Own a business with EXCELLENT CASH FLOW & NO RECEIVABLES!

• Well-established Business
• Business With No Receivables
• Excellent Location With High Visibility
• Niche Market & Easy To Operate
• Very Limited Competition
• Minimal Marketing Required
• Consistent Track Record – Repeat Customers
• Excellent Cash Flow With Growth Opportunity

Includes: All furniture, fixtures, equipment and goodwill
PRICE - $495,000

http://procisionbb.com/sale-check-cashing-business-bucks-county-pa/

Crescent Business Center For Lease by Procision Commercial Realty

Great for Office, Light Assembly, Engineering and Many Other Uses.

The Business Center is located on the North bound side of US Route 130 in Pennsauken, New Jersey. The park is located within a half mile from the Betsy Ross Bridge and has easy access to the Betsy Ross Bridge, Tacony-Palmyra Bridge, US Route 130, RT 73, I-295, and the NJ Turnpike.


The highlights of the opportunity are as follows:

• Up to 19,964 sq.ft.
• Street Signage on Route 130
• 100% Drop Ceiling Air-Conditioned
• Recent Renovated
• Office Furniture Available
  
• Ample Parking
• One Tailgate Loading Dock

For More Info or to schedule an inspection, please contact:
Richard Shore
856.228.5151 x 4
rshore@procisionbb.com

http://procisionbb.com/crescent-business-center-lease-procision-commercial-realty/

INVESTMENT SALES ENTREPRENEUR OPPORTUNITY Seeking an Entrepreneur to Join our Team!

INVESTMENT SALES ENTREPRENEUR OPPORTUNITY

SEEKING AN EXCITING AND REWARDING CAREER RATHER THAN JUST A JOB?

Interested in Investment Sales? Are you a self-starter and willing to learn? Do you have an outgoing and confident personality? Are you looking for an exciting opportunity for growth and development?

Procision Business Brokers and Commercial Realty is seeking a new Associate Team Member to join our Advising Team. The ideal candidate will possess excellent character and the highest level of integrity in all that they do. They will be results oriented, exhibit a consistent sense of urgency and desire to reach new heights both personally and in their future career. If you are results driven, self-motivated and have a track record of success, this is an excellent opportunity. Work on listings from day one and expand your knowledge and capabilities in the process!

REAL ESTATE LICENSE OR WILLINGNESS TO IMMEDIATELY OBTAIN SUCH LICENSE IS REQUIRED.

Company
Procision Business Brokers and Commercial Realty is a Business Advisory Group that provides Comprehensive Solutions for the needs of Business Owners, Investors, Landlords and Tenants in the Greater Philadelphia and Southern New Jersey Region. We are dedicated to the aggressive growth of our services and value collaboration, development and continuous improvement as a team. Procision's unwavering Mission is to function as a Trusted Business Advisor and create superior value for our Clients.

This is an excellent opportunity for a candidate that is looking to gain valuable skills and exposure in the business world and do so in an exciting entrepreneurial environment!

If you feel that you are a good match, please reply with your contact information and resume.

Robert Beach, CCIM, IBBA
President
Procision Business Brokers Procision Commercial Realty
rbeach@procisionbb.com
www.procisionbb.com/
856-228-5151 (o)
856-228-5152 (f)

http://procisionbb.com/investment-sales-entrepreneur-opportunity-seeking-entrepreneur-join-team/