Would you delay signing PS agreement due to market fluctuations?

by a searcher from Harvard University - Harvard Business School

4 years ago

I'm sure most people are aware of coronavirus and its recent effects on the stock market.  I'm nearing signing a PS agreement and am contemplating asking for an extension from the seller (30 days?) just to see what the market and interest rates will do.  

Are others in similar situations now or have been in the past?  How would you deal with it?

Assume that the seller doesn't have ready buyers lining up and that the deal will likely still be around at the end of the extension period.

0 likes
138 views
9 comments

searcher from Harvard University - Harvard Business School

They do interior plant care (in the wait rooms and lobbies to beautify space), so it might actually get cancelled or temporarily suspended as the hospitals figure out quarantine areas and change traffic patterns within the hospital.

4 years ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

Quick update that I've asked for a 30 day extension and the seller has agreed. This business has an existing client base of large hospitals which is quite tied into the coronavirus. The business is actually quite recession proof. It's the fact that we're dealing with a healthcare issue and they have hospitals as big clients that's making me delay. Why go in at a time when I might have to deal with crisis management on top of owner transition?

I also don't think that loans are going to dry up... lower rates are supposed to stimulate loan volume.

4 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.