Isn’t time affecting money when you’re searching for businesses to buy ?

August 16, 2021

by a professional from University of Southern California - Marshall School of Business in North Palm Beach, FL, USA

Can you solve this conundrum? How do you reconcile your fear of overpaying when you buy a business against your monthly lost opportunity income while you keep searching for what you think will be a better deal?

Most of my clients, for example, are expecting the profit of the business they acquire to range from $20,000-$80,000 per month.

Can you see how fast the lost opportunity income mounts up for searchers who unnecessarily dither?

Reply by a searcher
from Rice University in Tampa, FL, USA

As a searcher, I definitely have gone through that thought exercise. I target businesses with $1-2MM in EBITDA, so that's at least $100k in opportunity cost for every month my search drags on. However, in this hot market, it's hard enough to maintain price discipline as it is, without further psyching yourself out :)

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