Industry Research

3 Steps To An Excellent Buyer-Seller Meeting

Posted on January 23, 2012 by Spencer Tenney

Spencer Tenney, vice president of The Tenney Group
(www.thetenneygroup.com), is a member of the International Business Brokers Association and a Certified Business Intermediary (CBI). The Tenney Group is focused on business sales, acquisitions, business valuations and exit planning exclusively in the transportation industry. Spencer can be reached at (817) 274-0054 or [email protected]
Spencer Tenney, vice president of The Tenney Group (www.thetenneygroup.com), is a member of the International Business  Brokers Association and a Certified Business Intermediary (CBI). The  Tenney Group is focused on business sales, acquisitions, business  valuations and exit planning exclusively in the transportation industry.  Spencer can be reached at (817) 274-0054 or stenney@thetenneygroup.com

A typical first meeting between buyer and seller may take just a few hours, but the impressions made during this time can be permanent. Both parties are considering taking perhaps the largest financial leap of their lives.
At this point, the buyer and seller likely have some background information about one another but are still deciding whether to move forward. A well-orchestrated buyer-seller meeting can result in a buyer making an offer to buy a business, while a poorly planned get-together can leave a prospective deal dead in the water.

Have a plan
Outlining a plan for an upcoming buyer-seller meeting is crucial. Will the parties meet at a neutral location, or at the site of the business for sale? If a facility tour will be included, will the buyer agree to meet after-hours so as not to raise suspicion among employees? What do both parties hope to accomplish during the session? An ideal plan will specify a location, agenda, and goals. It’s wise to keep the dialogue as light as possible at this point. There will be plenty of future opportunities to talk about price and intentions if the initial meeting is a success.

Establish the rules
Sometimes buyers and sellers can get carried away during a first meeting and end up disclosing too much information. This may not be the time for putting on the pressure or discussing sensitive subjects such as price. The buyer-seller meeting is mainly intended to help a buyer determine whether to move forward with an offer, although it also can influence the future motives of the seller. Establishing some rules of engagement before the appointment — such as which topics are fair game and which are off limits, at least for the moment — can keep the conversation appropriate and on-topic.

Define expectations
Assuming the meeting is a success, what next? Defining expectations in advance of the buyer-seller meeting will allow for the next steps in the transaction process to proceed quickly and smoothly. In most cases, buyers already will have performed a good deal of financial investigation into the limousine or medical business for sale. Sellers already should have an understanding of what to expect from a buyer. The Tenney Group creates an expectation for buyers to present a letter of intent or term sheet within 48 hours of a meeting. The sooner negotiations can begin after both parties have confirmed an interest in doing business, the sooner a satisfactory deal can be reached.




View comments or post a comment on this story. (2 Comments)

More News

What's On The Must-Have List For Younger Travelers?

The line between business and leisure travel is blurrier than ever for Millennials.

Global Business Travel Likely To Advance Despite Uncertainty

Many signs show the global economy is improving. Total spending worldwide approached $1.3 trillion in 2016.

Stronger Economy Means Higher Travel Pricing In 2018

GBTA Convention Coverage: Air, hotel, and ground transportation rise on back of inflation, higher oil prices, and emerging markets.

Business Travel Spurs $547 Billion In GDP, 7.4 Million Jobs

GBTA Convention Coverage: Much of the industry's economy heft accrues directly to sectors that serve travelers.

America's Top Business Travel Cities

Factors include number of on-time flights, cost of lodging, reliability of mobile network coverage, traffic congestion levels, and emergency-room performance.

See More News

Facebook Comments ()

Comments (2)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - July 2017 $12.95 COVER STORY: * Why These Titans Work So Hard to Give it Away * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close