Chapter 15
Moving from Valuation to Negotiation
In This Chapter
Seeing how valuation helps the negotiation process
Preparing to meet the potential seller
Understanding negotiation do’s and don’ts
Using experts in the process
Everyone negotiates. People negotiate with family and friends to get things done — or done on their behalf. People negotiate with employees to get better performance from them. And people negotiate with landscapers, car dealers, pet groomers . . . you get the idea. But if you have a valuation based on dishonest or random data and operational practices, what are negotiation skills worth in a business context?
You could fill a warehouse with books on negotiation — how to do it, how not to do it, how negotiations work in various industries, how to negotiate through attorneys and other representatives, and on and on.
In this chapter, not only do we go over key points in business negotiation, but we also discuss a topic that we think is even more important: the quality of information that guides a negotiation strategy (information that you generate or that the target company generates for you). When you’re valuing a company, getting quality information is the first important step that directs all your negotiations involving that business.
No absolute law says that you have to buy a business when you find an attractive company worth owning or sell it when an offer ...
