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Article: Rocky economic times shouldn't affect selling price of your business.(Brief Article)
- Article from:
- Snips
- Article date:
- May 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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After 20+ years of transacting middle market acquisitions, I know the factors that affect the attainment of premium prices. Middle market acquisitions are transactions ranging in price from $1 million to $200 million. Many middle market executives mistakenly believe that external economic conditions significantly impact the timing and pricing of these deals. This is a gross misconception. Economic conditions should have little, if any, impact on middle market transaction prices as long as a strategic buyer is located.
A selling owner should not allow a large corporate acquirer to cite bad economic conditions as justification for a substandard transaction offer. ...