Buying a Business

7. Negotiating the Final Terms

If your due diligence checks have been thorough, you should be in a stronger negotiating position.

The problems and weaknesses you have uncovered may lead you to lower your offer, or to ask for tougher warranties and indemnities.

7.1 Be reasonable but firm in making requests.

• Explain the reasons behind your requests.

7.2 Keep the dialogue going, even if the process becomes awkward.

• The vendor is unlikely to withdraw at this late stage. Brinkmanship and all the other aspects of negotiation come into play.

7.3 Close the deal.