When a buyer and seller negotiate a valuation, both sides want to see the deal close with that valuation in mind. However, one side or the other might want to try to begin renegotiations of the sale price before closing. Sometimes if it is the buyer’s renegotiation of the valuation, he is doing so in order to get a lower price.
Steps Backward During Negotiation
However, keep your focus on getting the deal done. During the time a seller spends convincing the buyer to pay more, the business may take a step backwards. This could lead to reducing profits and ultimately cause the buyer to have more reason to ask for a lower valuation. Work with your M&A intermediary to renegotiate in a timely manner that does not drag the deal on, but also does not infringe upon the ultimate outcome of the deal.
Want to learn more about how to deal with the initial and renegotiating steps of the M&A process? Need a business valuation? Talk to the expert M&A intermediaries at George & Co.
Need help valuing your company?
We offer a wide variety of business valuation services, and your inquiry will be held in the strictest confidence.