Building a strong relationship with the current owner and seller of a small or medium-sized business (SMB) will help you close your deal successfully. Not only does a solid relationship foster trust and loyalty, but it also opens up opportunities for growth and collaboration. Creating a long-lasting relationship is beneficial to your deal and the success of the business moving forward.

Those new to entrepreneurship through acquisition (ETA) sometimes overlook the importance of pleasing the seller, and a strained relationship becomes the downfall of their deal. Avoid this outcome by attending to the seller from the outset. Try these five strategies to begin building a mutually beneficial relationship.

Key Takeaways:

Respect the seller’s position at their company.
Learn how to effectively communicate with the seller.
Have empathy for the seller’s position and why they are making the decision to sell their company.
Stay in the good graces of the seller by having your team hold the difficult conversations.
Build trust with the seller by working together.
Try to keep a positive attitude throughout the process.

1. Show the Seller Respect

Think of the seller as the ultimate arbiter of the knowledge you need to make a good decision. The seller may have founded your target business. They may have led it for decades. They’ve solved problems and weathered storms. They know what works and what doesn’t. That kind of institutional knowledge deserves your respect, especially if you’re hoping they will share some of it with you.

Some buyers make the mistake of walking into a deal like a critical inspector. While you should be scrutinizing every aspect of the business, keep your harsher opinions and appraisals to yourself. The seller is proud of what they have built—as they should be—so criticisms can cause them to put their guard up. If you start questioning business decisions, the seller might go on the defensive. That can send your relationship in the wrong direction. Instead, you want the seller to feel comfortable, open, and amenable.

On a basic level, show respect by being punctual, responsive, and professional in all your interactions. Remember that you should be trying your best to impress this person in every way.

2. Learn How They Communicate

Get to know the seller on a personal level. Take note of how they interact with others in the business, including their tone of voice, body language, and facial expressions. This can help you identify patterns and preferences in their communication style. If they like to joke, joke back. If they like to be precise in their word choice, be as specific as possible. Ask questions to get clarity to continue finetuning your understanding. The more you talk, the better you will be able to decipher what they are trying to say.

Putting in the effort to communicate effectively will make the seller feel like they are being heard. This allows you to build a friendly rapport and stay on the seller’s good side. Understanding how the seller communicates also helps you pick up on subtext and read between the lines. Sellers might not be upfront and specific about certain information, but you can begin to infer the underlying truth of what is being said.

3. Put Yourself in the Seller’s Shoes

Have empathy for the seller. Rather than viewing them as the guard dog of your deal, understand that they are making a life-changing decision just like you are. Get to know their motivation behind selling the business. After devoting years of their life to this organization, letting it go is probably a difficult decision to make. Be sensitive to the emotions and memories that they have tied up in the business.

Remember that the seller is handing off their legacy to you. That means they need to trust you and feel like you will take the business in a good direction. By understanding the seller’s perspective and priorities, you will be able to address their concerns and keep the relationship on a positive note.

4. Let Your Team Be the “Bad Guy”

Acquisitions often lead to difficult conversations and tense interactions. When so much is on the line, disagreements and obstacles will inevitably arise. Keep in mind that this is a high-stakes situation for everyone involved—you and the seller included. Don’t let the issues that emerge tarnish your relationship or impact negotiations.

As much as possible, you should try to separate yourself from those difficult moments in the eyes of the seller. That means using your team to be the “bad guy”. Let your lawyer, advisor, and due diligence professional handle the difficult conversations like questioning the numbers. Allow them to put the pressure on when the seller or broker is obfuscating or taking their time responding. If you must be the one to communicate, you can also address questions or concerns with the broker instead of the seller. Distancing yourself with the stressors of the deal will help you maintain a spotless reputation with the seller.

5. Collaborate to Build Trust

Trust is essential to building a good relationship with the seller. The seller needs to believe that you are the right person to take over their job as owner of the company. Follow through on your commitments, be transparent, and demonstrate your expertise. Prove that you are a trustworthy buyer by communicating clearly and being true to your word.

Working collaboratively with the seller throughout the acquisition process can generate mutual trust. Seek the seller’s input and feedback. Look to them for advice. This will show not only that you respect their authority in the business, but that you trust their judgment as a business owner. Demonstrating your trust in them will encourage them to begin trusting in you.

BONUS: Stay Positive!

Small business acquisitions are stressful and emotional for both the buyer and seller. Maintaining a positive attitude throughout the process can help build rapport and reduce tension. Leave your moments of doubt and apprehension for conversations with your team behind the scenes. When interacting with the seller, reassure them by revealing your can-do, collaborative attitude.

We’ll be your backup!

Walking into a deal alone, especially as a new buyer, can be challenging. You might not have the best instincts just yet, so the assistance of an expert can help you make the right moves from impressing the seller to negotiating effectively.

Feel like you need backup in your deal? Get started here.

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5 Creative Ways to Build a Strong Relationship with an SMB Seller