One thing that I found surprising was the level of questions and analysis that went into evaluating the worth of a business. When I see start ups that are valued in the millions and even billions I wonder how people got to that number. Now I have more of an idea as to how they do that.
One part that I found confusing was how the seller will always see his venture as worth more than a buyer thinks because of how much he has put into the venture. I understand that people want to find the lowest possible price to buy something but is it not possible for people to be understanding and empathetic of why a seller would value his business at a certain number. Granted if it is not worth that by any means then it just isnt. I just dont think people should by pass the conversation just because the assumption is that every seller may be this way.
Have you ever been in a position where you had to value a company or service? If so how did you make up your mind and was the owner of the business satisfied with the number or disappointed?
I don't think that the author was wrong because I have never been in a position to value any kind of business. However, I do think that LOI's are not that cool because it basically cuts off other avenues for better deals for businesses and corporations. I understand it's about security but at the same time business men are the first ones to make a slimey move and say "it's just business."
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