FAQs and Real Life Stories

Q#1:  How do I negotiate the best deal?

A#1: You negotiate the best deal when you are in a position of strength. Attracting multiple qualified Buyers and then negotiating all the deal points with the interested Buyers is an excellent position for you as a Seller.  CPA has many methods to attract multiple Buyers.  One tool we utilize is our detailed Seller Memorandum that positions your company in a way that it is more attractive than other business opportunities on the market and therefore attracts more Buyers.  Multiple Buyers can bring you multiple offers and this places you in a better position for negotiating.  These interested Buyers make offers through a Letter of Intent (LOI).  Another tool we utilize in negotiating the best deal for you is the way we handle the LOI.  The industry standard LOI is a short document that basically states the price and that the business is removed from the market while the Buyer performs their due diligence and a month later the attorneys negotiate the details or deal points.  The only problem with this approach is that you are in a weaker position because you are negotiating the deal points after the business has been off the market and all the other interested Buyers have since gone.  CPA rejects this type of LOI and insists that a fully detailed LOI be in place before the business is removed from the market.  The major advantage to negotiating with multiple Buyers while the business is still on the market is that you know all the deal points before the business is removed from the market.  This is better positioning for you during the negotiations.  CPA will guide you through the entire process, make recommendations and handle the negotiations for you.