Negotiation isn’t just about the highest price – it’s about terms, timing, and avoiding hidden pitfalls. A great deal on paper can quickly turn sour if the structure isn’t right.
Key factors in a strong negotiation:
Price vs. payment structure
Are you being paid upfront, or in instalments based on future performance?
Earn-outs and contingencies
If part of the deal depends on hitting targets after the sale, make sure they’re achievable.
Liabilities and risk
Ensure you’re not exposed to unnecessary risks once you’ve exited and are no longer in full control of the business.
Common pitfalls to watch for:
Not having multiple buyers
Relying on a single offer weakens your negotiation power.
Overpromising on future performance
If you commit to post-sale targets, particularly if they are ‘cliff-edge’ in nature, ensure they’re realistic and take care around accounting treatments that could be altered post-transaction.
Emotional decision-making
Selling your business is personal, but a clear strategy prevents costly mistakes.
Market outlook
Pete Muldrew, Hazlewoods M&A Director, comments:
“After two years of volatility, the UK lower mid market has entered 2026 with a renewed sense of stability. With interest rates demonstrating a degree of stabilisation and confidence returning, particularly as larger strategic deals re emerge, the conditions are increasingly constructive for lower mid market transactions.
“We’re seeing stronger fundamentals, better financing visibility, and a market that feels increasingly more balanced since the post pandemic boom. All of this points to a more active and predictable deal making environment for 2026.”
A confidential chat tailored to you – let’s discuss how to approach negotiations with confidence.