Negotiating: Formulaic vs. Numerical Deal Value (EP.28)
Permanent Podcast: Real Talk About Private Equity and Buying, Selling, and Operating Small Businesses
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Formulaic vs. Numerical Approach in Negotiations
The chapter explores the benefits and considerations of using a formulaic approach versus a fixed number approach in negotiations, emphasizing the importance of understanding adjustments and discussions related to post-cap X net owner earnings. It also discusses the potential for disappointment during a longer due diligence process and highlights the importance of sticking to agreed expectations and focusing on the future.
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