Post-Purchase Regret

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January 07, 2025

by a searcher from New York University in New York, NY, USA

Has anyone bought a good company (i.e., financials weren't the issue) but later regretted the decision based on lifestyle or other factors? What did you buy, what didn't you like, what did you do about it, and what did you learn? Thank you!

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commentor profile
Reply by a searcher
from Ivey Business School at Western University in Toronto, ON, Canada
There are a lot of factors to consider. We've acted for companies with poor post-acquisition results on customer renewals, missing equipment, and fake users in their social media. A good way to protect for these items is a holdback clause that reserves a percentage of the purchase price to be paid 6 or 12 months post-acquisition. An earn-out payment mechanism is another way to protect yourself.
commentor profile
Reply by a searcher
from Harvard University in Palo Alto, CA, USA
Great question. Following.
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