So, you have found a business that you want to buy, but the asking price is a little steep. No need to settle for the first number the seller offers. With some clever negotiating and a few smart moves, you may be able to lower that price and still walk away with a potentially good deal. Here are five ways that might help you achieve that without breaking a sweat.

Find the Fixer-Uppers

No business is perfect. So, take a good look at what could use some fixing. Maybe the equipment is outdated, the building needs repairs, or the website looks like it is straight out of 2005. Pointing these things out might give you a reason to request a price reduction.

Suggest a Payment Plan

Here is a fun fact. You do not always have to pay for the business all at once. Sellers are sometimes open to payment plans, which means you can spread the cost over time. This can be a win-win because it may help ease the financial loan upfront, while the seller could still receive the full amount eventually.

Imagine if you could pay 60% now and the rest over the next year or two. This approach could provide some financial breathing room as you have more time to pay off the rest. It’s all about finding a mutually agreeable arrangement.

Bring in the Pros for a Valuation

Sometimes, sellers might be a little optimistic with their pricing. That is where a professional business valuation may come in handy. This gives you an expert’s opinion on what the business is likely worth. If the valuation comes in lower than the asking price, you might have a strong case for negotiating the price down.

For example, if the seller wants $600,000, but the valuation suggests $500,000, you could say, “I had a valuation done, and here’s what the experts suggest this business might be worth.” This information may encourage the seller to consider adjusting the price.

Close the Deal Fast

Everyone knows that time is money. Sellers often appreciate a quick close. The faster the deal gets done, the sooner they can move on to their next project. If you’re ready to proceed quickly, this could provide leverage in negotiations.

You could say, “I’m prepared to close this deal within a week if we can agree on a price.” The seller might find this option appealing, as it could shorten the overall sale process.

Take on Some of the Debt

This is a bold move, but you can consider offering to take on some of the seller’s existing debt. Many businesses have loans or other financial obligations. If you’re open to handling some of that debt, the seller may find it attractive enough to lower the price to make the deal more appealing.

For example, if the business has $75,000 in outstanding loans, you could say, “I’ll take on the debt, but would like to see that reflected in the final price.” This can provide an opportunity for a discount while the seller steps away from that financial burden.

Buying a business is a big step, but that does not mean you have to settle on the initial asking price. By following the above tips, you might increase your chances of securing a better deal. Remember, it’s all about creating a win-win situation for both sides, while ensuring you make a financially sound decision.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions

Published by: Annie P.