You want to sell your business and retire or move on to greener pastures - sitting around another boardroom trying to convince someone to buy your business probably isn’t your idea of a good time. Even if you’re working out the details on the links, there are only so many times you can swing your club at a golf ball during bad negotiations before you’ll want to start swinging it at something else (to be polite).

Your goal should be to get to yes or no quickly; hearing no isn’t pleasant, but it’s better than hearing “Hmmm…ahhh…maybe; we’ve got to think about it,” followed by weeks of waiting. There are other prospective buyers.

This guide offers closing strategies that will get you to yes - or no - faster, so you can move on with your life.  

At A Glance

  • Structure the negotiation process upfront to avoid unnecessary delays.
  • Make sure your business is ready to sell (we offer a ready-to-sell assessment) so that you’re not wasting anyone’s time.
  • Create urgency by making exclusive negotiating windows that run out if a deal isn’t reached.
  • Get us to negotiate and structure the deal for you.
  • Use low-impact questions to move into high-impact questions.
  • Throw in a freebie to smooth over negotiations.
  • If you’re buying, be ready to match other offers.

Effective Strategies For Closing

1. Negotiate The Sales Process

Closing deals requires a structured, managed process.  You will benefit from utilizing the services of an experienced professional M & A Advisor who will:

  • Assess the prospects for “fit”
  • Define the process and steps that will be followed
  • Manage the entire process from prospecting, to deal negotiation, through closing
  • Mitigate stress, workload, and vendor fatigue on the part of the seller

Negotiations are fluid and complex.  The process has many moving parts and can be stressful, especially for those going through it for the first time.  The Catchfire team has managed hundreds of transactions and are leading experts in the field. 

2. Set Realistic Deadlines

Business deals take a lot of time; one party has to perform due diligence, documents have to be drafted, and negotiations are happening the whole time. Our team will manage those expectations and the process to set structured timelines, including meetings, site visits, Letters of Intent, due diligence, and closing dates.

To facilitate a smooth process we work with our clients to prepare information most commonly sought by prospective buyers when they assess an acquisition opportunity.  It’s an important bottleneck to remove and will allow the process to proceed more smoothly.

Too many deals fall through because the seller just isn’t prepared; that’s why we recommend working with us as soon as you even start thinking about selling your business. We will ensure everything is thoroughly prepared and presented in its best light, making the due diligence process as seamless as possible for a potential buyer.

3. Closing Readiness Check

This goes back to the last point we made (see how we’re tying these all together): If your prospect is interested in buying your business, it’s likely that sooner is better. They’ve evaluated your position in the market, their position in the market, their finances, and - after due diligence - your finances.

If it’s a good fit, they’ll want to buy, because time can put a wrench into all of those factors. Make your business easy to buy, and you’ll be much more likely to close the deal.

We pre-qualify all prospective buyers early in the process to ensure there is a strong fit and that they have the managerial and financial capacity to execute the transaction. 

4. Create Competitive Tension

Your business is ready for market (with Catchfire’s guidance), and we’ll position it so buyers are competing for the opportunity to acquire it.

Our objective is to create competitive tension by bringing multiple interested parties and offers to the table. This allows our client to select not just the best financial deal, but also the buyer who aligns with their strategic and personal objectives.

Once we have aligned on a preferred buyer, we move into a structured exclusivity period with the chosen buyer—providing them a fair opportunity to close—while maintaining the optionality to return to other interested parties if the deal does not proceed.

5. Utilize A 3rd Party

Negotiations are messy; your business is your baby, and the selling process can be an emotional roller coaster.  To minimize the impact of that we act as a buffer and intermediary; let us negotiate for you. We’ll give you an honest valuation of your business, get your company's due diligence ready to speed up the negotiation process, and even make recommendations to increase the value of your business in the eyes of a prospective buyer.  We can advocate for your best interests while removing much of the emotional strain.

Know When To Consult An Expert

You should consult an expert well before you think of selling. We help profitable businesses - hopefully like yours - make their business more attractive to prospective buyers. We find those buyers, vet those buyers, get you ready for due diligence, negotiate the deal - everything you could need.

Whether you’re looking to sell a business or buy a business, Catchfire can help.