A direct competitor can often be the most likely buyer for your business. A competitor already knows your industry and may see your company as a way to consolidate market share and gain more pricing control. They may also be able to buy your business and eliminate redundancies in your back office, meaning your business is worth more in their hands than in those of many other potential buyers.
The challenge with negotiating the sale of your business to a competitor is, if the deal falls through, you can end up regretting all the secrets you shared with them in the process.
John Bodrozic is the co-founder of Meridian Systems, which offered project management software to the construction industry. In 2005, Bodrozic began negotiations with a direct competitor and ended up living to regret it. Listen now to hear John’s tips for negotiating with a direct competitor.
Get Your Score
If you’re keen to see how attractive your company would be to a competitor, get your Value Builder Score and we’ll rate your business according to the eight factors buyers care about most. Go to www.colonialbb.com/vbs to get your score.
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Whether you are looking to exit your privately held business, represent an acquisition-minded corporation, or are personally interested in owning your own company or franchise, Colonial Business Brokerage offers the professional services that successfully bring buyers and sellers together.
Call Colonial Business Brokerage today at (443) 982-7332.
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