I’m sitting here pondering on finding a more effective and considerate way to do the following… (any suggestions will be greatly appreciated)
Seller: “A price of $_______ is what I want.”
Broker: “OK, great… so tell me, how did you arrive at your price? It helps us to determine whether we’re the right team to sell your business.”
Seller: “I sat down with my accountant and this is what we worked out.”
Broker: “OK great… so, lets look at what the historical and latest market stats on prices and multiples in your industry tells us.”
Seller: “This will be interesting!”
Broker: “As you can see, if we use this multiple on your current adjusted profit, the price is going to be somewhat less than than you’re asking…”
Seller: “Oh… but my business is different.”
Broker: “Really? Tell me more?”
And right there, the tone has changed. Enough to cast doubt in the Seller’s mind as to whether the Broker is the right one. As to whether any Broker can possibly sell the business for what’s wanted.
Granted, knowing what the market will actually do is anyone’s guess. But to blindly disregard the Broker, who plays in the market all day every day is not sensible.
But, knowing how to break news that is not so welcomed is never easy either…