Hi Searfunder community,

My offer price is about 20% less than what the seller is asking because of the below reasons:
1. Inventory worth 50% of revenue is included in the asking price and many of it is old inventory not being used regulary. With the high cost of capital I dont feel very comfortable paying for so much inventory and would prefer to negotiate better terms on the inventory.

2. The asking price is 6.5 times the last years EBIDTA - Which i feel is quite high for manufacturing.

I would lik to walk the terms of the LOI with the seller and understand his perspective rather than send an email via the broker. Any insights on how best to approach this.