Diagnosing the seller type

Ask these three questions in your first call. Their answers route to one of five seller types. Record the answers; you will use them throughout the entire negotiation.

• Q1: What matters most: highest price, fastest close, or most certainty? Price = likely a Wealth Maximizer. Speed = Reluctant Seller or Certainty Seeker. Certainty = Certainty Seeker. (Q1)
• Q2: Do you want to stay involved after close, or exit completely? Stay involved = Legacy Protector. Exit = Wealth Maximizer or Reluctant Seller. Unsure = possibly a Tax Optimizer testing options. (Q2)
• Q3: Are you working with an advisor or investment banker? Hired a banker = likely a Wealth Maximizer running a competitive process. Just an accountant or attorney = Certainty Seeker or Tax Optimizer. No advisor = Reluctant Seller or Legacy Protector. (Q3)

• What matters most: highest price, fastest close, or most certainty? transforms Do you want to stay involved after close, or exit completely?: Step 1 naturally follows from the prior action.
• Do you want to stay involved after close, or exit completely? transforms Are you working with an advisor or investment banker?: Step 2 naturally follows from the prior action.

Connectivity map for the five seller types and how to work with each

• 4.1 Concept: The five seller types and how to work with each The core concept in seller type diagnosis
• The Wealth Maximizer: The Wealth Maximizer Focused on price above all else. Willing to take earnout and seller note risk to hit their number. Likely running a competitive process with multiple buyers. Sophisticated about M&A. (Approach: emphasize speed and certainty of close over other )
• The Certainty Seeker: The Certainty Seeker Wants the deal done without drama. Accepts a slightly lower price for faster close and simpler structure. Fears the deal falling apart more than leaving money on the table. (Approach: minimize contingencies, use simple structure, demo)
• The Legacy Protector: The Legacy Protector Cares about what happens to employees and customers after they leave. Often willing to accept lower price for the right buyer. Wants to stay involved in some capacity. (Approach: demonstrate you understand and respect the culture)
• The Tax Optimizer: The Tax Optimizer Working with an accountant or tax attorney and focused on how the deal is structured for tax efficiency. Open to installment sales and equity rollover. (Approach: work with their CPA to structure seller notes as i)

• The five seller types and how to work with each feeds The Wealth Maximizer: The Wealth Maximizer supports the five seller types and how to work with each.
• The five seller types and how to work with each feeds The Certainty Seeker: The Certainty Seeker supports the five seller types and how to work with each.
• The five seller types and how to work with each feeds The Legacy Protector: The Legacy Protector supports the five seller types and how to work with each.
• The five seller types and how to work with each feeds The Tax Optimizer: The Tax Optimizer supports the five seller types and how to work with each.