Okay, a bit dramatic I agree, but you get the point.
Unfortunately, far too frequently, a seller establishes their price void of any logic; it is all emotion. They do so with the slim hope that someone will be foolish enough to pay their price, and sometimes it happens, but do not let that happen to you.
So we agree - forget the asking price!When buying a business, you have to approach the valuation process independently, without any emotion and with zero reference to what the seller is asking. You may find that your valuation varies greatly from the seller’s and then some buyers worry that their offer will “insult the seller”. Don’t worry, go ahead and insult them! It’s not their money. Of course, you would prefer to not turn them off and refuse any further negotiations, but when your offer is based on factual data, and a seller cannot provide a rational explanation for theirs, you will almost always win the argument. If you don’t, then be glad you didn’t.
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