How do you go about bidding on a deal? Let's say the deal meets your desired return metrics but you need to get competitive on it. I can see that you will probably bid until the purchase price hits the metric threshold (ex. at a $100M pp, your irr hits 13% (the min. you need for investors) compared to 15% at $95M), so the max you might be willing to pay is that much.
But how about for a first round offer? If you offer too low, the broker/ seller will just ignore you. But then you don't want to give up a great deal by bidding high right away either. I know you might have a whisper price or even an asking price, so how do you work around it? Thanks!