Fellow searchers, I am under LOI and have uncovered issues during due diligence that imply a purchase price adjustment as well as changes in some deal terms like seller note to mitigate risks that were not known prior to the LOI.
I have been sharing the pieces of data that I discovered along the way to prepare them for what is coming and it is now time to start speaking about the terms.
I would appreciate any tips/suggestions on how to present the changes.
Thank you!
How to negotiate purchase price and deal terms post LOI?
by a searcher
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I agree with Raymond Roberts as my clients rarely buy a listed business. There are advantages but when you have 15 buyers trying to buy the same business, the least knowledgeable buyer wins the bidding war. I am a big believer in searching for the 85% of the businesses that sell that are not listed. When you do this, normally we are the only one in the deal and we can get most of the business issues addressed in the LOI and get to the closing table. In 18 years, only 2 have not closed.
but as I stated, the seller is ready when they are represented so hopefully the info and process is easier. But at what cost?