The 3 types of sellers (and how to negotiate with each)

Not all sellers are the same.

And understanding what motivates them gives you a massive advantage in negotiations.

Today, I’ll break down the three most common types of sellers and show you how to structure deals that work for each.

Type 1 - The Retiree

This seller has been running the business for decades and is ready to enjoy their golden years.

They’ve made good money over the years and don’t necessarily need a huge lump sum payment.

What they want: Steady income in retirement and tax advantages.

How to negotiate: Offer seller financing structured as monthly payments over 5-10 years.

For example:

“You’re retired now. Would you like some income to live off of? I’ll pay you $5,000 every month for the next five years, and you’ll earn interest on top of that.”

This also helps them with taxes.

Spreading the payment over time means they pay less in capital gains tax than receiving everything upfront.

Type 2 - The Burnt-Out Owner

This seller is exhausted from working 60+ hour weeks and wants out fast.

They’re usually doing most of the work themselves, which means high profit margins but unsustainable workload.

One of my students bought an accounting firm from a burnt-out CPA who was handling 1,300 tax returns annually (over double the typical workload).

What they want: A quick exit, reasonable price, and minimal hassle.

How to negotiate: Move fast and make the process easy for them.

Offer a fair price (not necessarily the highest) but emphasize speed and simplicity.

They’ll value getting their life back over squeezing every last dollar out of the sale.

Type 3 - The Helpful Transitioner

This seller cares about their legacy and wants to see the business succeed under new ownership.

They’re often willing to stay on during the transition to help you learn the ropes.

What they want: Confidence that you’ll treat their “baby” well, and a smooth handoff

How to negotiate: Show genuine interest in the business and respect for what they’ve built.

Offer terms that keep them involved for 3-6 months post-sale as a consultant or advisor.

This gives them peace of mind and gives you invaluable knowledge transfer.

Why do all this?

When you understand what drives each seller, you can structure offers that give them what they actually want (instead of just assuming).

This makes you stand out from other buyers who only focus on price, and gives you the best odds of finding a great deal.

If you’re looking for sellers to start negotiating with…

I share business opportunities with subscribers when I come across deals worth evaluating.

To get those emails, fill out this short form:

I occasionally send out deals to this list that I think my subscribers might find interesting.

If you want me to send you these high-quality acquisition and investment opportunities (for free!), fill out this 2-minute survey:

👉 I want to buy or passively invest into a small business

Or, if you’re looking to sell your business, tell me more here:

👉 I want to sell my small business (and I’m actively looking for buyers)

Onward,

— Ben Kelly