No Pain Just Gain — Negotiating Tips for Buying or Selling a Business in Canada

Negotiating the purchase or sale of a business requires give and take to find solutions that meet and protect the needs of both buyer and seller.

Let's say you're the seller. You want to maximize the value of your business while minimizing risk and taxes. When the sale is closed, you and the buyer need to be on good terms. You are probably going to train them. You will probably be lending them part of the purchase price. You may even be staying on with them for a period of time.

The purchaser is buying without audited statements, and even though they have done some diligence, they are buying largely on trust—trust that you have developed with them during the investigation stage.

So, moving forward, good relations are important to both buyer and seller. And good relations aren’t achieved in a contest of wills, where one “wins” and the other “loses.”

It's far better to find options that meet both parties' needs. And that's where an experienced third party can help.

In Canada, business brokers often represent the interests of both seller and buyer, committing to confidentiality, loyalty and full disclosure to both parties simultaneously. And they are trained in guiding buyers and sellers to common ground in negotiations.

Negotiation Skills

Apply these key factors to improve your outcome: