Questions

"Deal Crafting" accurately describes what I did for years as a business broker. Most business owners are expert at delivering their product or service, but most know very little about the purchase or sale of a business. This leaves two inexperienced and somewhat ignorant parties trying to fumble around and make a deal.

As a professional broker, I would add value by first assessing a realistic selling scenario for the business and then setting realistic expectations in the seller's mind. Once a buyer was found, I would work to educate the buyer on the process of buying a business and show them examples of how deals can be structured. By communicating with both parties and understanding their goals in the negotiation, I often made suggestions which lead to an ultimate successful deal.

I would imagine that this scenario can play out in many areas of business where you have infrequent transactions or inexperienced participants. For example, specialized purchasing consultants exist to help companies acquire machines and equipment that they may not regularly purchase.

Could you not say that a designer or decorator is helping to 'craft' the chef's new restaurant? There certainly are people out there who specialize in coaching or shepherding a negotiation. To the point of the earlier respondents, I ran into a large number of charlatans and con artists who claimed to be able to do what I did but could not.

I would recommend that you ask for references from both sides of past deals and follow them up if you ever go looking for this type of expertise.

Hope this helps.


Answered 10 years ago

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