For those that work in acquisitions: what are some creative ways to win a deal? The obvious main items are:
- Purchase price
- DD period
- Amount of hard money
But are there other levers to pull? Would going in without a financing contingency help? Any ideas to stand out against these crazy buyers tolerating low returns and pitching up big hard money would be appreciated. It's a bloodbath out there.
Surety of close. Not having a reputation of re-trades. One capital source. Getting "internal approval" before it becomes a question. Accept more closing costs. Flexible on closing date
Strippers after a nice steak dinner is the typical way, no?
Just lost a deal to a group willing to wave DD. guess that's one way of doing it. fucking ridiculous..
just lost a deal to a group whose head transaction guy banged a stripper while i ran home to my below avg gf
Surety of close is #1 on my list. Deal flow (both number of deals and size), tendency to re-trade and extent of such, and your capital source are informative as to your reputation as a buyer and thus the likelihood of you showing up to the closing table.
If I take another girl to the dance and get stood up, this is no bueno. When this happens, I have to go back to the buyer pool with my hands around my ankles. These buyers are very likely to back off their original numbers. Worst case scenario, I may no longer be able to get a deal done as (i) prices drop below that magic number for our partner, or (ii) our partner becomes fixated on the original price that is now gone and won't accept a lower number. I am now stuck with an asset. Profitability for my firm, and in turn me, will suffer.
Sellers should evaluate offers through a risk adjusted lens. With this in mind, highest purchase price does not always equal you getting the deal. Moreover, think about human psychology and the incentives of the folks sitting across the table from you.