How much can business buyers afford to lose?
10% to 30% has been the typical range between the deal business buyers thought they might do and the deal they did (or aborted).
I’m talking about the almost-agreement between sellers and the buyers who obtained a second opinion from me before they signed on the dotted line.
I can count on one hand the number of potential deals buyers (or their advisors) have shared with me where the purchase price and the other terms of sale were as REASONABLY good as they could be for the buyers.
You would seek a second medical opinion if your doctor recommends a risky treatment, wouldn’t you?
Your life (or your client’s life) might not be at stake, but your personal and financial well-being is hugely at risk if you buy the wrong business or buy the right business on the wrong terms. Do the math for your pending deal. Compute how much you are willing to leave on the dealmaking table.
And then confidentially:
Email Ted J. Leverette, The Original Business Buyer Advocate ® Since the 1970s. “Partner” On-Call Network, LLC
(Don’t bother contacting me if you want to “steal” the seller’s business. I only work on win-win deals.)
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