After more than 6 months of negotiations, we'd finally come up with a package that was essentially done. He asked for us to send him a formal letter of intent and a semi-detailed business plan. We did that, he agreed with both sides acknowledging that a few details needed to be addressed...a few days later, we get a message that after talking to his advisors, "he was very concerned with a few points". Turns out they were all the major points but price.
The deal was pretty complicated because we didn't have any significant capital other than that needed to transition the business. Because he was essentially carrying the financing, we agreed to a much higher price for the business than it was really worth. We were willing to pay a premium for great terms. Literally at the 11th hour (1 week before we were to "take over"
he claims he has another buyer group interested that has some strengths and weaknesses compared to us and would we consider possibly working with them?
At that point, my wife and I were done. I'm about 90% sure that the "other" group wasn't really a serious offer. Our response was pretty simple..."we understand that our best offer may not have been good enough, but we're glad you have another buyer for your business."
He didn't even bother responding.
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