Considering Buying a Business? How to Make Sellers Comfortable

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B E N C H M A R K I N T E R N AT I O N A L

CONSIDERING BUYING A BUSINESS? HOW TO MAKE SELLERS COMFORTABLE


B EN CHMAR K

I N T E RN AT I O N A L

C ONSIDERI NG BUYI NG A BUSINESS? HOW TO MA KE SELLERS C OMFORTABLE

The acquisition process is unquestionably an uncomfortable one for a seller. They’re likely to be asked to pull back the curtain on their business and reveal information they’ve kept confidential. As many sellers quickly realise, having an experienced mergers and acquisitions (M&A) firm to walk them through the process is

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a wise choice, although the relationship between the buyer and seller proves most beneficial to getting a deal done.

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As a potential buyer, consider the following tips to ensure this relationship is a fruitful one:

BE TRANSPARENT While a buyer expects the seller to disclose their most private information, they can make this process easier by being as


transparent as possible about their own background in the initial meetings. A buyer should be prepared to sign a non-disclosure agreement (NDA) that ensures they have a legal responsibility to any sensitive information shared during negotiations.

As a buyer learns more about a seller’s business, they’re likely to request additional information. With each data request, a seller may want to know the reason behind it. As such, be considerate and explain the reasoning behind a request, all while remaining understanding of a seller’s sensitivity to revealing in-depth details about their business.

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B E C O N S I D E R AT E W I T H DATA REQUESTS

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To l e a r n m o r e a b o u t t h i s t o p i c , v i s i t t h e Benchmark International blog.


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