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Are You Selling Your Company? Be Careful with Financial Buyers!

Scott Edward Walker

In other words, the business model for financial buyers is to buy a business and then sell it (or take it public) within a relatively short period of time. It matters because, unless you understand the motivation of a prospective buyer, it will be very difficult to make informed decisions with respect to critical deal issues.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. While it’s flattering that someone might think I’m capable of immediately grasping all the complexities of the business instantly, it’s a bit unrealistic. You don’t have a defensible business model.