Stick to your number

searcher profile

July 31, 2022

by a searcher from West Texas A&M University in Amarillo, TX, USA

We were miles apart on valuation when we started the discussion with the seller. Good communication and building a relationship has now led to the LOI stage where we feel more comfortable about our number and bridging the valuation gap by offering a second bite at the apple. Lots to learn but having great counsel and sticking to our number, values and metrics are making all the difference.!

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Reply by a searcher
from University of Southern California in Los Angeles, CA, USA
I'm going through the same thing now. The broker was putting out a crazy asking price on a deal I am interested in. We were miles apart on the evaluation. I submitted an IOI letter to let them know what I was thinking. The broker ended up liking my proposal, and agreed with my initial evaluation. Submitting the IOI help build my relationship with the broker, and got us both on the same page. I'm hoping to submit an LOI over the next couple of days. Rapport building works!
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Reply by a searcher
from West Texas A&M University in Amarillo, TX, USA
Thank you, Ken. Is it true that the value of a business is ultimately what two parties will agree to? We have had lots of conversations and back and forth prior to the LOI. But when it finally came down to it, I said, I don't want to offend you with my offer but this is what I am willing to do... and he said, we like your approach, and we are not gonna close any doors. Either way, we will be at peace!
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