One more bit
Mon, 12/27/2004 - 15:00 — jpark (not verified)
Value and worth are subjective metrics. Just because someone else has a valuation in mind is no reason to lock yourself into their mindset. Often times the final agreed price has an economic benefit to BOTH parties, buyer and seller. If there was a negative penalty to either side, then the deal would be off. However, in most cases, both sides are better off having made the deal than not.
Just because an investor is going to “miss” on the low side for him, doesn’t mean that the number won’t be acceptable, or provide an economic rent to the seller. Consider the other costs that are involved in finding another investor to make an offer. If they are too high, then the deal is “good” in the sense both parties get what they want. If the costs are low, then the deal may be “bad” in that someone is getting a negative economic return.
Every deal is exactly the same, unique.
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Jean-Luc Park
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