When you find a great business to buy (but it's wrong for you)...

February 22, 2021

by a searcher from Harvard University - Harvard Business School in Fort Wayne, IN, USA

Would love some thoughts from the community. I'm a funded searcher, and I've got a great business under LOI that I think is a great opportunity, but not a great fit for my background. What's the best path forward?

Sell it for a finder's fee? Complete the transaction and hire a CEO? Negotiate w/ my investors to keep a piece of the equity (while they hire a CEO) and keep searching? I'm sure there are other's out there who have experienced this also. Would love to hear about what you did.

Reply by a searcher
from Western Michigan University in Grand Rapids, MI, USA

If you have investors, I would get their opinion as a group before making any decision. If you let the deal go, they could be upset. If you complete the deal and it doesn't work out, they could be upset. You want to make sure that you maintain a good relationship with your investors (because they can cause you some huge headaches if they want). If you follow their advice with this deal, it is tough for them to get upset with a poor result.

Reply by a professional
from Georgia Institute of Technology in Atlanta, GA, United States

I would suggest you refer it for finders fee and focus on the right company to acquire that will be a better fit for you. Let me know if you'd need my help with that process.

+3 more replies.

Join the discussion