Richard Wilson: letting the seller retain the piece it valued
A seller's valuation led Richard's team to ask which part of an asset mattered most to the seller. He described leaving that piece behind and buying the remainder.
The original package could be separated
Richard recalled a medical and dental community asset his team wanted to acquire. Instead of treating the seller's package as indivisible, the review examined why the seller valued it as it did.
The buyer wanted a different portion
His account says the seller kept the piece driving its valuation, while the buyer acquired the rest. The insight concerns the boundaries of what was being purchased.
In Richard C. Wilson's words
"we did the due diligence to understand why they valued it so highly, had them keep that piece." (Richard C. Wilson, Due Diligence mini-series)
How to use this
- Ask which components explain the seller's valuation.
- Distinguish the part the buyer needs from the part the seller most wants to retain.
Questions and answers
What changed in Richard's acquisition account?
The seller retained one piece and the buyer acquired the remainder.
What did the review seek to understand?
Why the seller placed such a high value on the original package.