1. 8 Ways to Sweeten Your bid to buy a business without paying more Sunbelt Business Brokers

2. The Objective Tip the scales in your favor over other buyers Keep the deal affordable Increase the sellers confidence in you Get the seller to accept your offer

3. 1: Shift more of total price to cash up front Cash is King Cash is King Single best way to sweeten your offer without increasing (and possibly decreasing) your purchase price Single best way to sweeten your offer without increasing (and possibly decreasing) your purchase price Signals financial strength Signals financial strength Signals seriousness Signals seriousness Reduces the sellers risk by reducing their carry Reduces the sellers risk by reducing their carry

4. 2: Shorten the financing If the Seller is offering 5 years before the balloon payment, offer 4, or 3. If the Seller is offering 5 years before the balloon payment, offer 4, or 3. Puts the sellers repayment on fast forward, reducing his carry risk. Puts the sellers repayment on fast forward, reducing his carry risk. You actually reduce your total interest obligation. You actually reduce your total interest obligation.

5. 3: Present a clean net worth statement or Company Balance Sheet Make sure your personal net worth statement is accurate and up to date. Make sure your personal net worth statement is accurate and up to date. If you represent a Company – present your current balance sheet. If you represent a Company – present your current balance sheet. Signal your financial strength explicitly. Signal your financial strength explicitly. The Sellers confidence about your ability to meet note obligations is increased. The Sellers confidence about your ability to meet note obligations is increased.

6. 4: Write a letter Sell yourself to the Seller. Heres why Im the best buyer for your business. Signals high motivation to succeed. Reaches the Seller on an emotional level.

7. 5: Remove a contingency Theres plenty of contingencies in there… so youre not losing your out Theres plenty of contingencies in there… so youre not losing your out A show of good faith – release a hostage A show of good faith – release a hostage

8. 6: Forget the Earnout Sellers signal their confidence in a business with willingness to base your payments on future sales. Sellers signal their confidence in a business with willingness to base your payments on future sales. But they generally prefer cash today, or a guaranteed payment stream, such as a promissory note with fixed monthly payments But they generally prefer cash today, or a guaranteed payment stream, such as a promissory note with fixed monthly payments

9. 7: show that you understand the process Respect the process Respect the process Make your requests through the sellers Broker Make your requests through the sellers Broker Honor timelines and deadlines Honor timelines and deadlines Respond quickly Respond quickly Be professional always Be professional always And always - Continue to respect confidentiality – dont let a anything damage this business - you may own it soon! And always - Continue to respect confidentiality – dont let a anything damage this business - you may own it soon!

10. 8. Close Sooner Set your offer for closing as soon as possible. Set your offer for closing as soon as possible. Signal your confidence with moving forward. Signal your confidence with moving forward. Remember – the Seller has been looking forward to that day! Remember – the Seller has been looking forward to that day!

11. Now your offer is Sweet! Summary In a competitive situation – you want your bid to rise to the top. In a competitive situation – you want your bid to rise to the top. Any or all of these strategies can make that happen. Any or all of these strategies can make that happen. And none of them are costing you any more money! And none of them are costing you any more money!

12. Questions? Call me – or click through to search our business listings