Nobody likes to be taken for a ride when a business proposition is considered. Particularly if you’re on the buying side, it’s important to know the key details with full transparency before taking the leap towards purchasing and running your own business.

If you find yourself in this very position, having just found the business of your dreams that you're keen to secure and operate on your own, it’s time you learnt the art of negotiation to ensure the purchasing procedure is as smooth as it can be. Your bargaining skills will be tried, and your resolve will be tested through the process. This all can often appear daunting for those who’ve never experienced buying a business before.

Negotiation is a key part of the business acumen, so it’s only fair you learn its art before approaching the acquisition on a practical front. Consider our negotiation pointers and things to watch out for, to ensure your dream business is in your hands as effortlessly and in as little time as possible.

Know what you’re buying
You can’t possibly engage in a negotiation without knowing the finest details of the business you want to purchase! By the time you’re ready to buy, and want to participate in negotiations with the seller, you ought to know the company inside-out.

Namely, you need to first firmly understand what exactly the seller is offering; whether you’re simply buying the legal rights to the brand, or the whole works from the bottom-up including stocks, equipment, website management and forwarding orders. Be savvy and know exactly what's being transferred to you upon purchase.

Valuate all the assets and equipment to ensure that the asking price is accurate, perhaps with the help of a valuation expert. The cost of logistics, inventory and business value must all be determined prior to making an offer, so you’re not forced into paying more than what you ought to, and you only buy the elements of the business you wish to purchase.

Money matters
Unless money is absolutely no object, you will need to ensure that your future business falls within your budget. Assess its risk factors, the inventory and its upkeep, profitability, your current financial status and if you have access to a contingency fund. You’ll also need to keep in mind the cost of a broker and an accountant/financial adviser for your budget.

It is not wise to exhaust your funds at the onset of your newly purchased business, as you’ll need money to sustain yourself over a long period of time. This is especially true if you anticipate profits to only flow through much later.

Bargain for the best deal
Research will ensure that you have a strong case against your seller, especially when it comes to agreeing upon the price at which you wish to buy the business. Always assume that the seller’s opening price is negotiable, and provides a counteroffer backed by market trends and supported by your broker and valuation expert.

You can perhaps negotiate a compromise by understanding why the business was up for sale in the first place. Look at its accounts and financial status, and provide your own valuation backed by figures and research, so the seller can understand and appreciate your offer.

Keep calm
Negotiations can be tiring and have the potential to wear you down, so it’s important to keep your spirits positive throughout the process to make sure the relationship with the seller remains on good terms, whilst also being able to maintain a firm grip your purchasing position.

No doubt these talks can go on for weeks at a time so get comfortable and familiar with the individuals involved and stay cordial throughout the process. Keep a professional front, and perhaps even use this chance to learn from the seller and of their past experiences. After all, haggling is easier when everyone is happy, especially if you require the goodwill of the seller to prolong with the business after purchase!

It’s clear that you can sway the nature of your negotiations in your favour if you simply keep in mind your research and bargaining skills.