Mark Osborne warns sellers about a buyer tactic: lock them in with a Letter of Intent, then drag out negotiations while the business suffers. When revenue dips from the distraction, the buyer uses that decline to demand better terms.
You tell them those stories. I've heard the phrase said before, you tie them up, then you beat them up. You tie them up with a letter of intent or with some sort of indication that we're going to work together. And then, as you say, you beat them up until they take their eye off the ball. And in that protracted time, they aren't able to keep all of the plates spinning. And so their revenues fall off just a little bit, which gives them another, another baseball bat to beat you up with.
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