Buying a business not on the market
Knowing the time-scales the owner of a target business wants can help you to create an appealing offer says Jonathan Jay, founder of The Dealmaker’s Academy.
In this short video, he discusses how:
- A seller’s time-scales will reveal how desperate he or she is to get the deal done
- How a highly-motivated seller can help you to achieve a better deal
Prefer to read this? Here’s the transcript:
Hi, this is Jonathan Jay, The Dealmaker’s Academy.
Welcome to today’s tip.
Very important tip today, which is a question you would ask in the opening phone call.
So you are speaking to the seller of a business and you’re the potential buyer, and what you want to ask is this, you want to say something along the lines of, “Is the business currently on the market?”
And then you just sit back and listen and wait for the answer.
And they might say, “No, it isn’t,” they might say, “It’s been on the market for three months,” “It’s been on the market for six months.”
They might say it’s with an agent or broker, and this is all the information that you want to gather, because if it’s on the market with an agent or broker, why are they speaking to you?
Why have they contacted you?
You want to find out if it has been on the market, how long it’s been on the market for.
If it’s been on the market for more than six months, there’s probably a frustration building up.
More than a year, they’re probably so frustrated that if you can construct some sort of sensible deal, they will accept it.
So finding out whether the business is on the market is a great tip to find out very early on in the conversation, it helps you in the negotiation process.
To get the next tip, hit the subscribe button. I’ll see you next time.