Don’t step over a dollar to pick up a dime. Shannon Hay, NCI’s go-to for SBA funding, said this during a recent negotiation process for a practice sale. The seller became too insistent over charging the buyer for equipment and fixtures, which are normally included in the sales price. There are exceptions, of course, when there are recent and expensive equipment upgrades, but context and price points are equally valuable considerations, if not more so.
In this case, we were negotiating a $1.6mm sale, and in question was $30k worth of equipment. Fortunately, Shannon’s expression resonated with the seller when I asked: Do you really want to jeopardize a $1.6 mm sale over $30k? The seller regained his perspective and recognized the benefits of not harming the deal over the value of equipment.
Again, think about context and price point. When you’re in negotiations, understand the distinction between what matters and what does not, comparatively speaking, and always keep your focus on your goal: selling your practice smoothly and easily for a good and fair price.
New Clients, Inc.
