Royce Yudkoff

Sellers, when they sign their LOI, think about how they're going to spend every penny of that price. They've purchased their vacation homes. They've designed their boats. They've planned their trip around the world. And they've spent every penny of that $2 million or $5 million that you want to spend, that you plan to buy. And when you say, well, it ain't going to be five anymore.

Sellers, when they sign their LOI, think about how they're going to spend every penny of that price. They've purchased their vacation homes. They've designed their boats. They've planned their trip around the world. And they've spent every penny of that $2 million or $5 million that you want to spend, that you plan to buy. And when you say, well, it ain't going to be five anymore.

It has to be four. They're going to go kooky. It becomes irrational at that moment. And those deals tend to bust. So I would say you want to give yourself enough room so that you can absorb some due diligence disappointments. But having said that, the LOI process is competitive and brokers want every penny they can get.

It has to be four. They're going to go kooky. It becomes irrational at that moment. And those deals tend to bust. So I would say you want to give yourself enough room so that you can absorb some due diligence disappointments. But having said that, the LOI process is competitive and brokers want every penny they can get.

And sure, they care about whether you have funds and what's the likelihood of closing. But since most buyers are one-time buyers, they don't have a track record of saying, well, we're not the highest price, but you should take our bid because we always close.

And sure, they care about whether you have funds and what's the likelihood of closing. But since most buyers are one-time buyers, they don't have a track record of saying, well, we're not the highest price, but you should take our bid because we always close.

As part of the transition into ownership of the business, they go talk to their customers and they discover that there are services and extensions that their customers are so eager to get. And the seller might have said, well, that's a lot of work. I don't want to do that. These young whippersnappers, they got a lot of energy. They say, oh yeah, we can do that. We can do that.

As part of the transition into ownership of the business, they go talk to their customers and they discover that there are services and extensions that their customers are so eager to get. And the seller might have said, well, that's a lot of work. I don't want to do that. These young whippersnappers, they got a lot of energy. They say, oh yeah, we can do that. We can do that.

And they're able to grow because their customers actually want what they provide. I think the small firm space is capitalism done well. You find entrepreneurs working on their businesses so that their businesses delight the customers. The customers are thrilled to pay for the services or goods they're getting. Nothing succeeds like success.

And they're able to grow because their customers actually want what they provide. I think the small firm space is capitalism done well. You find entrepreneurs working on their businesses so that their businesses delight the customers. The customers are thrilled to pay for the services or goods they're getting. Nothing succeeds like success.

If you have a vendor that's doing really good stuff and never disappoints, delivers on time and high quality, and when something goes wrong, they make it right instantly, and the owner gives you their cell phone number. boy, those businesses are going to grow.

If you have a vendor that's doing really good stuff and never disappoints, delivers on time and high quality, and when something goes wrong, they make it right instantly, and the owner gives you their cell phone number. boy, those businesses are going to grow.

That's a new question for us, Royce.

That's a new question for us, Royce.

I'm going to do the rare thing of disagreeing with you. We teach a lot of theory, but we teach it in the context of practice. So we're teaching a lot about how to think about business, how to think about management, how to think about corporate finance. But we're always doing it in the context of a concrete, meaningful example. So it's not that we're not teaching theory.

I'm going to do the rare thing of disagreeing with you. We teach a lot of theory, but we teach it in the context of practice. So we're teaching a lot about how to think about business, how to think about management, how to think about corporate finance. But we're always doing it in the context of a concrete, meaningful example. So it's not that we're not teaching theory.

It's we're teaching theory in a more digestible form, perhaps, than equations on the blackboard. There's one case we teach that just always amazes me. Every time we teach it, I look at the teaching plan and say, this just can't work. And we go ahead and teach it. And it's like, wow. And students come back and say, wow, I learned so much today. And it's an amazing case. What is it?

It's we're teaching theory in a more digestible form, perhaps, than equations on the blackboard. There's one case we teach that just always amazes me. Every time we teach it, I look at the teaching plan and say, this just can't work. And we go ahead and teach it. And it's like, wow. And students come back and say, wow, I learned so much today. And it's an amazing case. What is it?

I'll leave the protagonist out because it's an unfortunate situation. The former students buy a business, things go badly, demand falls. It just so happens to be the moment of the Great Recession. They're aware of the Great Recession, but they hadn't thought it through in their particular business. And so demand falls, they have a sticky product and they decide to cut price 10%.

I'll leave the protagonist out because it's an unfortunate situation. The former students buy a business, things go badly, demand falls. It just so happens to be the moment of the Great Recession. They're aware of the Great Recession, but they hadn't thought it through in their particular business. And so demand falls, they have a sticky product and they decide to cut price 10%.