When does it become counterproductive to keep negotiating?

December 05, 2024
by a searcher in Toronto, ON, Canada
I'm looking at a deal with $20M revenue and $1.7M EBITDA. I offered $6M and they countered with $6.5M is it even worth pushing back given the business seems relatively high quality and the difference represents only a few months of EBITDA essentially? I was planning to split the difference and put $250K in cash, $250K in incremental seller note.
At the same time, they came back with various other requests and I essentially gave in on all of them, so don't know if I should be pushing back at least on something.
Update: Thank you to everyone who shared advice - I'm now under LOI, we landed on $6.3M including $900K total seller financing (2 year standby) and a giveback of $200K from the NWC, which is pegged conservatively at $4.5M. Fingers crossed we successfully make it through diligence now!
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