Buying, Selling, and Valuing Financial Practices: The FP Transitions M&A Guide (Wiley Finance) by Grau David

Author:Grau, David [Grau, David]
Language: eng
Format: epub
ISBN: 9781119207382
Publisher: Wiley
Published: 2016-08-15T04:00:00+00:00

Dealing with a Reluctant Seller

One of the most common frustrations that buyers experience is their inability to get enough information from the seller, early in the process, to decide if they want to proceed further. Yes, there may be 50 interested buyers, putting the seller in command and control, but if none of the interested buyers can get enough quality information in a prompt manner, the transaction is destined for failure.

Buyers often communicate to a selling advisor with this refrain: “I don’t want to spend a lot of time on this opportunity unless I can be sure this is still something that I am interested in. I need more information. ” Buyers, start by looking at the Buyer’s Due Diligence Checklist included in the Appendix to this book. There is a long list of items that buyers are going to review, and that sellers will need to provide. You are going to get your information, but first things first. Be patient and don’t jump the gun. Remember that sellers are looking for information on you, too, but their first issue is how best to reduce a large and enthusiastic pool of buyer prospects to a manageable group of finalists, maybe the one best match, in fewer than 30 days, typically. That is job one . Work with the seller and follow their lead, focusing on what you can do to convince them that you are or could be their best matching prospect. Cooperation, confidence, and patience are the order of the day. The time will come for you to ask your questions.

If the seller has listed his or her practice on the open market, don’t hesitate to call your Transaction Team contact. As a qualified intermediary, this is what they do. As long as you treat all involved with respect and provide clarity as to your needs and goals, you will receive help and support in return. If you’re working with a seller on your own, one on one, almost every piece of advice in this section still applies. As a side note, FP Transitions has developed a program that helps a buyer and a seller who have already found each other work through the process of closing a transaction. The Comprehensive Transaction Support (CTS) process guides each party through the necessary steps and helps keep the sale on track. In most cases, the seller has agreed to sell at a certain price with terms “to be hammered out later.” So often, this is where a deal can get stalled. In these cases, having a guide, or traffic coordinator, can keep the process moving along.

Another issue that buyers sometimes run into is a seller who always finds one more thing that they don’t like, and just can’t ever quite commit, or get to, the finish line. Sellers get to do this only once, and many advisors—most if you think back to Chapter 1—will never sell. It is hard to let go, and especially hard if the seller is unsure about whether it is the right decision.

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