Never under estimate the other side of the transaction
This sounds like paranoid advice but it is something that should be remembered. Examples abound where underestimating the competition has cost people millions if not billions of dollars, or lost teams championships. When selling your business it is no different. If you underestimate the buyer they will win – if they underestimate your skills then you will be in a favorable position.
How does one side fall in to this trap? The answer is that they do not do the homework on the other side. When I enter a negotiation with someone I strive to find out everything I can about the people across the table. How many kids they have, their names, ages, etc. Where did they go to school? How long have they been on the job? How many deals have they done etc.
I also have learned to be extremely modest in my own dealings. It does no good for the other side to know too much about you. You should script out as much as possible. Let them know what you want them to know. I am not suggesting being dishonest. I just do not make it a habit to discuss my back ground. Does it help that I am now from Kentucky? Sure! Does anyone Google Me? No. Should they? Yes, of course. They would find out I have done over thirty deals. That I write this blog and from this post they would know that I don’t volunteer information and that I have probably heavily researched them.
Guess what most people won’t. Am I guilty of underestimating them?
Maybe.