Anyone getting cold feet?

searcher profile

March 12, 2025

by a searcher from Pomona College in South Kingstown, RI, USA

With all the uncertainty surrounding the new administration’s policies, is anyone feeling hesitant about moving forward with a purchase?

I’m currently under LOI and finding myself increasingly nervous. I can’t shake the feeling that the economy might take a downturn in the near future. At the same time, I know that at some point, I have to take action—I don’t want to be stuck in a perpetual search, always waiting for the “perfect” time to buy.

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commentor profile
Reply by a searcher
from University of California, Los Angeles in New York, NY, USA
Uncertainty like this can be a useful window into how the business and its customers respond to external shocks—arguably provides another data point that may enable you to move forward with more confidence
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Reply by an investor
from New York University in New York, NY, USA
Your concerns are understandable - buying a business is a big decision, but you can't time the market. Whether things look rosy or challenging, nobody knows what is coming next, so buyers should treat those two situations identically. Make sure that you have an adequate cushion (Benjamin Graham's "margin of safety") so the business can withstand a downturn. Make sure the valuation is appropriate - not just the multiple, but be wary of buying on peak earnings. And make sure the cap structure is appropriate - be prudent with leverage and make sure you have excess cash and/or LOC availability. Good luck!
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