THE LONE WOLF: A SELLER’S NIGHTMARE

“Having only one buyer is the same as having no buyers,” is a statement often quoted by professionals in the M&A marketplace. After exhausting every qualified financial and strategic buyer, private equity firms, and the like, and to no avail; what is a Seller to do about the lone prospective buyer?

Seller rest assured, if you’ve hired a qualified M&A professional, expect them to make the best out of the situation and to have a cache of standard negotiating tools applicable to “The Lone Wolf.” This set of tools will include:

• Patience – confidence in one’s position
• Strategic aura of indifference – “I care, but not THAT much…”
• Seller vulnerabilities – knowing buyer’s lack of awareness
• Buyer constraints – understanding buyer also has time pressures/constraints
• Set a minimum walk-away price – in advance; adhere to it

Although not ideal, having a “Lone Wolf” can lead to a successful transaction with the proper M&A team in place and a plan for dealing with scenarios as such, preferably on the front-end.