Andrew Gazdecki says startup acquisitions stall when buyers see high risk, pushing founders to cut price. He recommends lowering that perceived risk through earn-outs, seller financing, transition help, and staying involved post-sale to bridge valuation gaps and close the deal.
A lot of times when acquisitions don't close or there's no offer in place and the founder that we're working with is thinking, well, let's lower the price, really the perceived risk on the acquisition is just too high. And so if they're able to bridge that gap by being more available post-close or willing to prove that the business will be in great shape once the deal closes with an earnout or seller financing, that can bridge the gap. So being open to creative deal structures, offer additional transition support. You can say you're open to working in the business for an additional period of time. You can be open to an earnout. You can be open to seller financing, providing more transition support to make that acquisition successful. All those things add up.
The Buyers Who Made the Move: What They Bought, How They Did It, and What Happened Next
