Lately i’ve encountered some questions/concerns around inflation as it relates to selling a business and thus I thought i’d post a piece to my network on how inflation can impact the sale of your company.
As the costs of running a business continue to rise, so does inflation. This puts companies in all industries in a difficult position, as they have to find ways to counteract the economic effects of inflation. Home services, food and beverage, B2B services, retail and more are all struggling to keep up.
One area that is particularly affected by inflation is the sale of a company. When inflation rates are high, it can complicate the negotiation process for both buyers and sellers. However, with the right preparation and experienced negotiators, it is still possible to reach a successful agreement.
There are a few key things to keep in mind when trying to sell a company during a period of high inflation. First, buyers will be looking for a bargain. This means that they will be looking to pay as little as possible for the company. Sellers need to be aware of this and be prepared to negotiate accordingly.
Second, it is important to set realistic expectations on both sides. If the seller expects to receive a certain price for the company and the buyer is only willing to pay half of that, it is unlikely that a deal will be reached. It is important to be realistic and understand what each side is looking for in the transaction.
Finally, experienced negotiators will be essential in successfully selling a company during a time of high inflation. They will be able to navigate the complicated negotiation process and help both parties reach an agreement.
If you are looking to sell your company, it is important to be aware of how inflation can and likely will impact the process. With the right preparation and experienced negotiators, you can still reach a successful agreement.