Different Buyers From Seller's Perspective
Table: Different business buyers from a seller's perspective. Minds Capital invests equity into deals led by independent sponsors
Negotiations
34 posts
Retiring vs. Entrepreneurial Sellers
When buying a business, your seller is either retiring or entrepreneurial. Below is a cheeky spin on the main differences
Seller w/ Cold Feet
If your seller is getting cold feet, they’re usually much colder than you think. 🥶 • Don’t wait and see.
Numbness
Searcher after closing his first deal: “By the time my deal closed I was so numb by the process - the
$300k Break Fee
"I negotiated a $300K break fee if they walk away before it closes." Break fees aren't
R&W Insurance
The seller’s attorney, who had no M&A expertise, wanted to ambiguize* the Reps & Warranties. Illustrative example:
Wives kill deals
2-3 years ago I lost a deal because the family didn't think I was paying enough. I
Negotiating NWC
Negotiating working capital - inventory, receivables, and payables - is often the most contentious part of a deal. Here is how I
Keep the ball in your court
When dealing with business owners, don’t leave the ball in their court. They’re busy and many suck at
Don't anchor
According to my professor at b-school, the first person to throw out a number loses. Not in my experience.
