Highest Price vs. The Best Deal When Selling Your Business
Naturally, as a seller you want the highest price you can get for your business. But in some cases, however, it might not be the best deal. There’s an old adage “You can’t separate the Price and Terms.”
For this reason, every offer should be reviewed carefully. When an offer is presented, naturally the first thing as a seller you look for is the “price.” If it is lower than anticipated, many seller’s first reactions are to decline the offer give it back, initiating the case for its being much too low. As a seller you should consider an offer carefully and avoid quick knee jerk reaction.
Here are a few alternatives that might offset a lower price:
• an offer with no or very few, and easily satisfied contingencies (can help to create a successful close)
• a consulting agreement or other deferred compensation- often can add up nicely for sellers
• a quick closing
• all cash, if that’s important
• employment contracts with relatives or long-time employee(s)
• business vehicle to remain with the seller
• buyer has a long success record indicating long-term survival
• short-term payment period if seller financed
When a professional business broker is involved, he or she can point out those areas that may offset the price, down payment or the structure of the deal. After all, the important thing is not what as a seller you get, but what you get to keep!