How do you approach LOI presentation?

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by a searcher from Emory University - Goizueta Business School
in Atlanta, GA, USA

8yrs ago

How do you approach LOI presentation?

I just heard back from a broker about my submitted LOI, "The sellers have decided not to accept your offer and not to counter your offer. They don't feel there is any chance of coming to any kind of agreement with that big of a difference in offer and asking price".

I'm curious to hear how this community handles communicating LOIs. Cheers!

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reply by a searcher 8yrs ago

Can you get a sit-down meeting with the Seller to walk them through your offer? If you take a diligent approach to explain the reasons you came to a different value than they have, many times it helps soften the seller’s stance, and allows you to continue the conversation. It’s been successful for me in the past.

reply by a searcher 8yrs ago
from University of Toledo in Shaker Heights, OH, USA

I'm curious, was the difference in strike price a difference in valuation? If so, did you propose a buying multiple of EBITDA, SDE, or Free Cash Flow? Lastly, I would thank the broker for the opportunity to bid and stay in touch, things change.