Qualification and Negotiation
Everything, as the saying goes, is negotiable. But what both parties have to remember is that negotiation isn’t a battle but a conversation. Every deal can be improved upon. Every concession requires a concession in return. The key here is qualification and negotiation.
Working towards the Letter of Intent
This whole process requires careful planning and constant qualification and negotiation. The majority of points can be agreed via phone and email before a full meeting. Should there be issues, the earlier they can be resolved, the better.
To start with, both parties are working towards the key stage of the Letter of Intent. When this Letter is agreed, the buyer then has the power in the negotiations.
When it comes to the meeting to complete the deal, it should just be the confirmation of positions previously agreed by both parties.
After the closing meeting
That meeting to complete the deal isn’t the final stage of the sales process. Legal teams will then have to create a contract, with the possibility of more qualification and negotiations.
It’s standard practice to perform due diligence, and this, in its turn, could also throw up new issues.
After that, solicitors will require warranties and a letter of disclosure.