Reeg added that sellers “have to decide what they are willing to give up and what is nonnegotiable. If the seller’s firm brand is his or her name, it might be more emotional to give that up.”
“You, as the buyer, need to show the seller why a transaction is of value to them,” Mayhue added. “The most time consuming part as a buyer is to work with the incoming team.”
Unlike acquisitions in some other industries, most buyers in the financial industry are not making a deal so they can squeeze profits out of the firm being acquired, she added. “Most want to buy a firm to help it grow, so keeping the staff is important,” she said.
McCarthy said she can usually tell what sellers want and crafts the agreement to satisfy them. “Communication is the key,” she said.
Before a search for a buyer is started, the seller has to ask what he or she wants to do and why, Mayhue said.
“You are going to have to be able to articulate that to the staff and to the buyer. Then ask the buyer why he or she wants to buy. As buyers, we look for firms that want to grow in areas where we want a new presence or areas where we want to expand our presence,” she said.
“Then ask the buyer why the move is good for the seller,” she added. Those questions have to be answered satisfactorily before any deal can go forward.