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Article: Demand a Good Price Despite Bad Times.
- Article from:
- Metal Center News
- Article date:
- June 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Sackett Business 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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Many service center owners wishing to sell their middle-market companies ($1 million to $200 million) mistakenly believe that external economic conditions significantly affect the timing and pricing of these deals. This is a gross misconception. Economic conditions should have little, if any, impact on the transaction price for a strategic buyer.
A selling owner should not allow a large corporate acquirer to take advantage of bad economic conditions to justify a substandard offer. Instead, he or she should proudly demand a price similar to what would be expected under optimal economic conditions.
Acquirers are always trying to "steal" a seller's company; ...