Multi-Unit Franchisee Magazine Issue I, 2016 | Page 81
go under exclusivity. Alternately, you may
opt to solve for certainty of closure or
retention of key personnel, in which case
buyer selection and previous transaction
track record must be weighed with great
importance. It is critical to keep your
specific priorities top of mind. Achieving what is most meaningful to you is the
correct measure of success.
Finally, it is important to keep in mind
how others are perceiving you. The last
thing you want to do is give yourself a
reputation of being difficult to work with.
Not only can this make people reluctant
to work with you, it can also severely affect your chances of being considered
as a viable buyer or seller. Parties who
develop a bad reputation will ultimately
miss out on opportunities because fair
dealers will choose to avoid them, opting
to work with people who share the desire
to do business in a productive manner.
Conclusion
Overall, a “good for the goose, good for
the gander” approach helps buyers, sellers, advisors, and everyone else involved
in the process because it is both more
Taking impractical
positions makes
it more difficult
for your advisors
and attorneys
to do their jobs
successfully.
efficient and reduces the time spent negotiating deal terms. While it is true that
this approach might not automatically
resonate with a longtime owner who
is selling their life’s work to retire, it
is important to remain as objective as
possible. Remember that unnecessary
negotiation affects goodwill between
parties, creating a challenging climate
in which to resolve the truly important
issues. Taking impractical positions makes
it more difficult for your advisors and
attorneys to do their jobs successfully,
especially if they are put into a position
where they have to support unrealistic
terms. Doing so also can cause a loss
of credibility in the eyes of the other
party, not to mention the increase in
the amount of legal costs that will be
incurred by both sides.
How you engage in a transaction
and how your approach evolves over its
course will directly shape your potential
for success. Following industry norms
and well-defined best practices may
seem overly conventional to some, but
we have demonstrated that an approach
of fair dealing actually results in better
execution, as well as happier clients.
Dean Zuccarello is CEO
and founder of The Cypress
Group, a privately owned
investment bank and advisory services firm focused exclusively on the multi-unit
and franchise business for 25
years. He has more than 35 years of financial and transactional experience in mergers,
acquisitions, divestitures, strategic planning,
and financing in the restaurant industry.
Contact him at 303-680-4141 or [email protected].
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