September is here and spring is in the air. Normally the busy time for business brokers and even with the market the way it is, it seems it will be the same again this year. I had a pretty mediocre time on the golf course over the weekend and it was almost a relief to come into work on Monday.

What to talk about this week, well, we have a deal that has just gone unconditional and my lasting memory of this deal will be the quality of the communication by all the parties throughout the transaction.

How pleasant it makes things when even in the tough times of a negotiation that no-one takes things personally and all parties are willing to talk things through before reacting or committing to a personal position.

There are a significant number of parties involved in any business transaction. Generally there will be two lawyers, 2 accountants, at least one banker, landlord plus their lawyer, possibly a Due Diligence specialist, a vendor plus spouse and a purchaser plus spouse. That is a lot of personalities to manage, but it is possible if we have a willing buyer who not only understands the process but also understands that any transaction is a two way street and a willing seller who doesn’t take the process personally and understands the purchaser's need for verification of businesses performance now and into the future.

Open lines of communication are critical and can often be strained when the professional advisers working for both parties only have their client’s absolute interests at heart, rather than a more practical compromise, to get a deal done approach.

Both parties being empathetic of the others situation also offers the transaction its most likely chance of success. If the owner is asked the question, how would he/she feel and act if they were purchasing the business and vice versa with the purchaser then both parties should end up being a little more understanding of the others positions.

I note on Richard Parker’s blog he comments that if a buyer and seller trust each other, buyer wants to buy and seller truly wishes to sell, you cannot stop them from getting a deal done. I very much agree with this and it is up to the broker to try to create this environment so a transaction can take place.

In conclusion we have had this week one of our more pleasant transactions complete. What made it pleasant was all the parties’ openness and empathy towards the other side of the transaction. We were able to keep the emotion out of the transaction, none of the parties took a hard and fast position on any terms or conditions at any stage, neither party hid behind their professional advisors so a transaction got done. If you are a business owner be mindful of the complexity of the transaction from the purchasers position, don’t take his/her requests for information personally and use your broker to mediate the process not hide behind your lawyers and if you are a purchaser be mindful that this process can be very stressful for the owner, their business practice may differ from yours, and treat the owner the way you would want to be treated when you come to sell the business. Both parties completing the transaction amicably also offers the business the best chance to efficiently transition between owners. See you next week.