03 May Socializing With Sellers
Have you ever considered socializing with sellers? I know it goes against the grain for buyers to build relationships for smooth purchase and sale transactions but believe it or not, it makes a huge difference. Buyers like yourself think that getting the best possible price and terms is the most important. Aldrin has experienced instances when misunderstandings and lack of communication were responsible for long delays and additional costs to transactions or even causing the deal to fall through. In other situations, deals that seemed unlikely to go through still happened because the sellers and buyers cooperated fully due to liking each other. As simple as that.
A lot of experienced deal makers understand that numbers are important but they do not make deals go through, people do. Establishing a relationship with the seller is paramount for a buyer.
Here are the two main reasons why relationships are deal drivers:
- Our trust is a lot stronger in people we know and like. The deal making process involves a lot of uncertainties for both sides. This usually means there is a risk-taking feeling to the concept. Human interaction and socialization reduces this risk.
- Decisions are made emotionally and then rationalized. This is the nature of human beings. Even famous CEO’s of large multinational companies operate the same way. If the seller likes you personally, he / she will find reasons to sell you the business for a reasonable price and terms. On the other hand, if the seller does not like you, he might change his mind about the whole idea of selling the company just to not sell it to you, out of spite.
Buyers justify their lack of social skills by believing and acting as if business results depend on rationality or economic benefits. Time has proven over and over again that this is an old theory with limitations. Open up your mind and your spirit for a successful purchase. Business people DO act emotionally and managing emotions will always be a success factor in business.