new searcher, question about deal with no asking price

by a searcher from Rice University - Jesse H. Jones Graduate School of Business

3 weeks ago

Hi Everyone, fairly new searcher and new to the site!
I've come across a deal through a broker that has no asking price. Everything I've worked with so far has an initial asking price to start with. Is this common? The business is a manufacturing company and has seen revenue and earnings fall the last 2 years.

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searcher from Harvard University - Harvard Business School

I have found it to be common, my suggestion is to take a look a the financials and build out what you can pay from an IRR and debt convenants standpoint. I focus on getting to a number/range that I feel is fair to the business and I can support/raise with. I would not be concerned with trying to find the lowest number possible, each buyer has their own capital sources.

3 weeks ago | like reply | 0 likes

searcher from Northwestern University - Kellogg School of Management

Plug the numbers is a very simple model to understand how multiples affect the IRR you want to hit and offer a range

3 weeks ago | like reply | 0 likes

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