8d • General discussion
New G1C Acquisition Brief: The Margin for Error Is Shrinking
This week’s issue gets into something every buyer should be thinking about right now:
Does your deal still work when the financing gets worse?
We break down a $1 million financing example across different interest rates, why seller financing can sometimes create more value than negotiating another $50,000 off the purchase price, and how to separate the value a seller has already created from the value you expect to create after closing.
There’s also an interesting lesson from a recent car wash platform acquisition: owning multiple locations and actually building a scalable platform are two very different things.
Here’s the question I’d put to the AON community:
Take the deal you’re looking at right now and increase your interest rate by 100 basis points while reducing Year 1 cash flow by 10%.
Would you still buy it at the same price?
Drop your answer below. I’m especially interested in what you would change first: price, seller financing, equity, working capital, or the deal altogether.
0
0 comments
New G1C Acquisition Brief: The Margin for Error Is Shrinking
powered by
Suggested communities
Powered by