Today’s answer: Is the seller’s reason for selling important? If the reason for selling is that the ship is sinking and he’s tired of bailing, that may be important!
Rarely do we get that kind of authenticity from sellers. However, every piece of information we hear from the seller is important in our overall decision making process. The reason for selling can tell us whether the seller has integrity or not – depending on what he says. We can compare the words and the reason for selling to other things that we’ve learned about the business as we do our due diligence and evaluation exercise.
We can learn whether the the seller has a legitimate problem or obstacle that he can’t overcome. And we can consider whether we could overcome that obstacle ourselves. So whereas we may not get the whole truth or even partial truth from the seller, it’s always good to hear their statement and think about it, and even use it as a question source to draw more information out of the seller about what is going on in the business.