World Class Mergers & Acquisitions  |  For Companies $5 Million to $250 Million in Revenue

Making an Offer: You Can Set the Price If I Can Set the Terms

Oftentimes as a Buyer, a critical component of your success in acquiring and prospering in a new business venture can be the continued cooperation and goodwill of the Seller.

But IF you don’t need the Seller’s continuing cooperation after closing to teach you the business, or to retain his key customers, suppliers, and employees, or to use his license(s) to qualify the business until you can secure your own license(s);

And IF, through a combination of personal equity and bank financing, you can afford to pay 100% cash at closing and don’t require any Seller financing;

And IF there’s nothing unique about this business that makes it particularly well suited to your needs & your future business plans, i.e., any other competing business would fit just as well;

And IF time is not of the essence in getting this deal closed; THEN by all means consider making an offer below the Seller’s Asking Price, and be prepared to spend some time negotiating a mutually acceptable selling price and terms.

ON THE OTHER HAND, IF, as a Buyer, you’ve determined based on an analysis of market comparables & sold comparables that the Seller’s Asking Price is in the range of fair market value, and is not unreasonably overpriced;

And, IF ANY of the above conditions are NOT met, THEN I recommend that the sum of ALL of the elements of your offer, including cash down, assumed liabilities, Seller financing, and Seller’s compensation package, should at least equal – if not exceed – the Seller’s Asking Price.

If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a complimentary consultation with us, have them contact me, or any of the M&A professionals at

By: Mike Ertel, Transworld M&A Advisors