The importance of business research
To strengthen your negotiating position and achieve a better deal, you need to research the business you are targeting, according to Jonathan Jay, the founder of The Dealmaker’s Academy.
In this brief video, Jonathan reveals:
- Where to find information about the company you’re considering buying
- Why you should research the sector or market in which the target company operates
Prefer to read this? Here’s the transcript:
Hi this in Jonathan Jay from The Dealmaker’s Academy.
Welcome to this tip on buying businesses, and today’s tip is all about knowledge.
Knowledge is power as they say, and the more knowledge you have about the business that is ah, being sold to you, is being pitched to you.
The stronger your negotiating position, the better the deal you will get. Now what I mean by knowledge. Well first of all, look at the company’s website.
Understand what it is that they are selling.
So, when you are talking to the seller, if they are saying something that’s at cross-purposes with what the website says.
Why, why isn’t the website being updated?
Why do they say one thing, and the website says another?
Look at their accounts at Companies House.
You find out what the accounts say, so if the seller is trying to tell you what a wonderful business it is.
You know because you’ve done your research.
You’ve got the knowledge.
You know that maybe it isn’t so wonderful after all.
Maybe when they tell you that they are the number one player in the market.
You’ve done your research.
It would be on Google.
You’ve found that loads of people sell the same thing.
Sometimes at a high price, sometimes at a lower price, but you know your market.
Knowledge is power in negotiating.
Now for the next tip, hit the subscribe button. Ill see you next time.