Have been in discussions with a seller for several months and negotiations have recently come to a standstill. We have built a really good relationship to this point and both sides want to move forward but we are not aligned on one item - price (not a surprise). The seller has chosen not to use a broker and have not gotten a 3rd party valuation of the business. This seller has also shared that they have had several failed attempts at selling the business because of price. Looking to the SF community for any ideas or creative ways to negotiate terms to get around price to continue moving forward with this seller. Happy to connect with anyone directly to share more details and potentially use to help get the deal done - please DM me if interested.
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by a searcher
from Western Washington University - College of Business and Economics
in Seattle, WA, USA
in Seattle, WA, USA
1yr ago
Creative deal terms with seller stuck on price?
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by a searcher
1yr ago
from University of Glasgow in Glasgow, UK
from University of Glasgow in Glasgow, UK
I would agree with Aaron, get the vendor to carry the difference by extending the deferred payment period, you could determine and illustrate this with cashflow projections on what the business can afford to service .
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by a searcher
1yr ago
from Western Washington University in Seattle, WA, USA
from Western Washington University in Seattle, WA, USA
Just circling back on this - thanks everyone for your thoughts and advice on this, especially those of you who were able to connect directly to provide perspective and guidance based on past experience. Unfortunately, after several attempts at creative terms using combinations of seller financing, milestone payments, seller retention/equity roll, etc. I had to walk away from the deal. I think it came down to the seller not being ready to sell - no matter what price or deal structure. Trying to figure out the best way to catch this earlier in the conversations so not to waste anyones time in the future. Lesson learned, on to the next!
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