Which of the following is NOT a key advantage of buying an existing company compared to starting one from scratch?

Opportunity to build brand and customer ties from scratch

During a first call, what is the best course of action for a searcher when the seller does not meet the criteria?

Keep introduction minimal and, if misaligned, politely exit the call

What is the main reason why first-time searchers are advised to build a professional website early in the process?

To reassure business owners that searcher is a credible and serious buyer

What is a key reason why searchers should express their price offer in monetary terms rather than using multiples?

Sellers often think about EV in terms of € amounts, not valuation multiples

What is the purpose of the “good and prudent housefather” clause in a Letter of Intent (LOI)?

To require seller to run the business as normal without doing crazy things

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Answers

1
Which of the following is NOT a key advantage of buying an existing company compared to starting one from scratch?
Opportunity to build brand and customer ties from scratch
Facing fewer entry barriers compared to starting from scratch
Stronger ability to manage a company from prior leadership experience
Immediate cash flows and potential for early salary compensation
2
During a first call, what is the best course of action for a searcher when the seller does not meet the criteria?
Continue conversation and keep the relationship warm
Emphasize the searcher’s credentials and propose a second discussion
Acknowledge misalignment but request financials for potential benchmarking
Keep introduction minimal and, if misaligned, politely exit the call
3
What is the main reason why first-time searchers are advised to build a professional website early in the process?
To showcase their portfolio of companies already acquired
To demonstrate advanced web development skills to prospective sellers
To reassure business owners that searcher is a credible and serious buyer
To enable potential investors to apply for co-investment opportunities
4
What is a key reason why searchers should express their price offer in monetary terms rather than using multiples?
Sellers often think about EV in terms of € amounts, not valuation multiples
Most sellers are professional investors and are used to DCF valuations
Sellers prefer to see offers in dollars to calculate potential taxes
Expressing in multiples is more legally binding and limits negotiations
5
What is the purpose of the “good and prudent housefather” clause in a Letter of Intent (LOI)?
To allow the seller to make strategic changes before closing
To require seller to run the business as normal without doing crazy things
To require both parties to agree on financial reporting standards
To let the seller restructure the company to improve value before closing

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