29 Jul Proper Etiquette for Buyer-Seller Meetings
In our continuing series on how business brokers should work with buyers and sellers to ensure great buyer-seller meetings, we’ve covered a lot of area. In the third part of this series, we’ll explore some of steps expert Jim Parker feels that business brokers should take in working with their clients. Taking these steps will help you to achieve optimal results during buyer-seller meetings.
Establishing Trust
At the core of all business transactions is trust. It is extremely difficult for parties to move forward and finalize deals without at least a basic level of trust. One of the key steps that business brokers should take when prepping sellers is to make sure that they truly understand this point. You should point out to your sellers that they should not try to hide the flaws of the business.
As Jim Parker noted, when sellers talk about the negatives with a prospective buyer, it builds trust. Buyers don’t want to feel as though information is being hidden from them.
Building Relationships
Parker recommends that business brokers should tell their buyers to remain in their car when they arrive up for a buyer-seller meeting. He or she should text or call you upon arrival so that you can enter the business together. This simple tip can avoid misunderstandings and help to minimize any negative first impressions.
Another key tip for Parker is that buyers should tell sellers a little bit about themselves at the meeting. A short five-minute intro on their background and experience, as well as what they are attempting to accomplish with the business, can go a long way towards building the relationship.
Special Advice for Brokers
Parker’s third point for successful buyer-seller meeting is for brokers to “keep their mouths shut.” He feels that all too often business brokers and M&A Advisors want to show off how much they know and prove that they are a valuable part of the process. In short, business brokers want to impress everyone involved.
Parker’s view is that you did all the work before you arrived. Now is the time to help facilitate a positive interaction between the buyer and the seller.
As Parker stated, “One of the most important things is that buyer and the seller like each other.” You want the buyer and seller to form a bond. When you largely stay out of the conversation, this will dramatically increase the chances of a successful transaction taking place.
Every part of the buyer-seller meeting is important. Parker points out that far too many business brokers fail to prepare their buyer for the buyer-seller meeting. A few minutes preparing your buyer for what to expect and how they behave can have a big impact on their interaction with the seller.
