Posts Tagged ‘overvaluation by the vendor’

Vendor Delusion: the biggest hurdle to clear when acquiring a business

Vendor Delusion: the biggest hurdle to clear when acquiring a business

Research proves that the great majority of business owners delude themselves about how much their business is worth. 80% of businesses <$50M put on the market fail to sell – (Tom West, President Business Brokerage Press) And the single biggest reason for this is over-valuation by the vendor. If you are acquiring a business or about to do so, then this research has clear implications, as does the solution I am about to discuss. Unless you address this vendor delusion you may have to walk away from the deal. When this happens you are in what Steven Covey would have referred to as…