We are often asked what makes a deal successful? We decided to share our thoughts and experiences to help buyers and sellers have a more successful deal making process.
This blog is for informational purposes only. This blog is not legal advice, and no attorney – client relationship is intended or formed by this blog. For more information or to contact an attorney at Foreman Law, please email info@goforemanlaw.com.
Top Tips for the Deal Process
“A lot of these lessons learned were through doing it the wrong way…and then realizing I can do it the right way later,” Jacob Wayman.
- Be Patient – But Be Proactive
The deal process can take a long time. Sometimes a very long time. You need to be patient, but you’ve also got to be proactive. You need to know the steps along the way and make progress on those steps daily. - Prepare Early
Being prepared early can help you be patient and proactive. Being prepared creates margin and can lessen anxiety about the process and the deal itself usually contributing to much better outcomes. Build in extra time even before you begin the deal. - Be Organized
Make sure you know where everything is at in the process, or that you have clearly tasked someone on your team with that responsibility. You will have attorneys, bankers, investors, real estate agents and more reaching out to you for information. Being organized with the correct information in a timely manner will help your team better serve you. - Be the Star of Your Team
Every team needs a quarterback who clearly understands the plays and knows what everyone’s role is. You need to be the team leader, or clearly designate someone to fill that role in order for the deal to go successfully. - Be Optimistic
People are looking to you for guidance and reassurance. Keep it positive and find the answers when problems present themselves. Going negative can cause your team to focus on problems instead of solutions. - Look for Deal Makers & Deal Breakers
Know what creates value for you and what destroys it. If you know these makers and breakers up front, you will know how to prioritize. This will help you make decisions quickly. The sooner you know there are enough “deal-maker points” for the deal to work, the sooner you can get your deal closed and the more time you have to plan for a successful deal. The sooner you know there are too many deal breakers, the sooner you can pull the plug on a deal that doesn’t work. - Communication
You need open and transparent communication in all parts of the deal. Establish open lines of communication with all players on your team and set expectations about communication. It will create a more productive relationship and deal process. - Relational Capital is Critical
What makes a deal work really well – and the business work really well for the buyer after closing – is building great relationships. It’s helpful to think of the strength of each relationship as having a “relational capital” account balance. Take great care of it and you can spend that capital when you need something like a favor or a quick turnaround. Neglect those relationships, or walk into a toxic relational dynamic, and it can make everything else take longer, be more difficult and more expensive (figuratively and literally). - Make Progress Daily
When you wake up every morning, have a goal to make progress on the deal today. Maybe it’s something really big – like getting a key contract signed. Or maybe it is something small. Just make a promise to yourself to make progress every day. Time kills deals. Keep the momentum for yourself and others on the team. - Happy Buyer – Happy Wire
If you’re the seller, think of your buyer like a customer. Figure out what they value most and then how to deliver it to them. Happy buyer, happy wire at closing!
Wellness Tip!
The deal process can be long and sometimes stressful. Keep track of your wellness along the way. Deals will always be out there but your family, loved ones, and pets, may not. Take the time to invest in them and don’t get overwhelmed with “the deal”. Those who are intentional up front about self-care and personal relationships tend to have a much better deal experience, and frankly, better outcomes.
-Sam and Jacob
Sam Foreman, Founder & Chief Experience Officer, Foreman Law
Jacob Wayman, Employee Benefits Consultant, Orange Theory Fitness Franchisee
Each week we will release a new blog based on our podcast, “How to Buy & Sell a Business Successfully”. Our simple goal is to help you have a more successful deal. For more information, please reach out at info@goforemanlaw.com.