EFP 186: Business Buyer Bias
In this episode, Joe and I discuss the biases buyers commonly hold when looking at potential businesses. Biases can stand in the way of great opportunities, so you’ll want to be aware of what to watch for.
We talk about some of the more common buyer biases and give you alternative views to consider when you’re conducting due diligence or shopping around for deals. We’ve seen these biases firsthand and witnessed them hurt buyers from getting businesses that were a solid fit for them.
It can be hard to spot the difference between a solid due diligence process and one with biases and lost opportunities, so listen in to help yourself get the best deal possible.
Whether you’re a buyer or a seller — this is an episode you don’t want to skip.
Check Out This Episode:
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Topics Discussed This Week:
- If The Business Were Good, They Wouldn’t Be Selling It
- A Better Multiple Is Always Better For Me
- I ONLY Buy XYZ Businesses (Particular niche, monetization type, No PBN’s, no inventory, etc.)
- Always Better To Negotiate A Lower Price Than List
- The Broker Is Only Looking Out For The Seller
- EF Listing # 45386 a Mobile App In The Social and Networking Niche
- Ace Chapman
- Empire Flippers State of the Industry Report
- Richard Patey on How to Snowball $100K into $1MM within 3 Years through Website Investing
- Greg Elfrink interview by Brad Costanzo on the Bacon Wrapped Business Podcast
Spread the Love:
“Solid due diligence will have more nuance rather than hard lines…there’s more of a focus on individual interests and skill sets rather than absolutes.” – Justin – Tweet This!
“By making sure you structure the deal and set the deal up in a way that gets them their deeper, underlying want, you can take advantage of the areas where it’s just not as important to them and it is important to you as a buyer.” – Justin – Tweet This!
On multiples: “The likelihood of a business succeeding, failing or staying the same is not baked into that type of calculation.” – Justin – Tweet This!
“Don’t haggle for the really small amounts if you found a good deal.” – Justin – Tweet This!