From PROFIT, October 2008 issue:

Finding someone who’s interested in paying cash for a stake in your business is only half the battle. In Money Magnet: How to Attract Investors to Your Business, Jacoline Loewen shares some valuable tips for the other half negotiating the deal.

The first offer isn’t the last offer. Chances are you won’t like all the terms of the deal, but there is always wiggle room. Make sure you’ve set the bar for your highest and lowest price.

Take your time. You might feel pressure to give the nod after you’ve read through the term sheet, but it’s crucial to go through it with help from a trusted advisor – and a fine-toothed comb.

Speak up. If you don’t like what’s laid out in the term sheet, speak now rather than later. Better yet, offer an alternative solution.

Avoid a cash crunch. It can take up to seven months between the handshake and money in the bank. Lacking the funds to support your firm through the negotiations will be an instant deal-breaker.