Buying a business is not easy and you will have questions and concerns. Selling a business creates just as many questions and concerns for the seller. You can often get significantly better price and terms by being aware of the seller’s needs and removing some of his or her uncertainties.

• Resume and Financial Statement.  The more information the seller has on your past experience, qualifications and financial situation, the more likely he/she will accept the offer you make. By extending financing to you, the seller is acting as your banker, and he needs to feel comfortable with you.  Remember, once the seller accepts your offer he is committed, but you still have contingencies to remove before moving ahead.

• A Fair Offer. A fair offer is one that realistically satisfies the needs of both buyer and seller. Sometimes that results in an offer, which is quite different from the listed price and terms. Your broker will help develop a win-win offer. A word of caution: What about “low ball” offers?  Sometimes they damage your relationship with the seller. This could result in reducing your chances of getting the business for a fair price.

• Reasonable Down Payment. Every buyer wants to conserve cash. But, a very low down payment can indicate a buyer’s lack of commitment to the business. The number one concern of sellers is the safety of taking a note from the buyer. If the seller questions a buyer’s commitment or seriousness about the business, the seller may not negotiate seriously with that buyer.
  
• Quick Removal of Contingencies. It’s to everyone’s advantage to proceed through the contingency removal phase in a quick but thorough fashion