Use references to build trust
Discover how to overcome any prospective seller’s suspicion of you by offering to provide them with a reference from one of the owners you’ve bought a business from. In this short video by Jonathan Jay, founder of The Dealmaker’s Academy, explains:
- How you can use this strategy after you’ve done your first deal
- What to say to overcome a business owner’s initial suspicion
- Why a reference will help to make a business owner more open to your offer
Prefer to read this? Here’s the transcript:
Hi, this is Jonathan Jay.
Welcome to the Dealmaker’s Academy.
Welcome to these videos, where I’m sharing with you some top tips, things that you will not read in books on mergers and acquisitions because these are things that I learned from experience, from being in the trenches, from actually being there at the conference, doing this stuff day in day out.
Here’s a great tip for you today.
Let’s say you’re with a seller who is, has a business that you have an interest in.
But they are slightly suspicious of you.
They’re slightly, they’re not entirely sure whether they’re going to get a great deal with you.
Are you going to waste their time? And you can feel that they are a little bit cautious of you.
Well, why don’t you get a reference? And say look, why don’t you speak to Mr. Smith?
I bought Mr. Smith’s business last year and Mr. Smith will tell you how we did the deal. Mr. Smith, I’ll ask him to be very open with you. And he’ll tell you what it was like working with me.
And he’ll tell you that I was fair. And that’s a really important word, fair.
He will tell you that I was fair.
And if you have done a great deal with Mr. Smith and Mr. Smith thought you were fair, Mr. Smith is your reference, then you give Mr. Smith’s phone number.
They’ll phone Mr. Smith and Mr. Smith will say yeah, I did a deal with Jonathan and you know well, he was very fair.
And that’s the word that he’ll use, that’s the word that you use, and as a result they now then relax because they realise they’re not going to be taken advantage of.
You’re not going to mess them around, you’re not going to waste their time.
And that’s really, really important to people.
So, use previous deals that you’ve done as a reference.
All you need to do is do one deal.
From that moment onwards, that great deal can be a reference point for the next seller that you speak to.