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Taking money off the table

(zachholman.com)
135 points holman | 1 comments | 30 Oct 25 18:50 UTC | HN request time: 0.209s | source
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nachox999 ◴[30 Oct 25 19:45 UTC] No.45764446[source]▶
I believe the complete opposite. If someone is willing to buy your business, no matter the amount, it’s because it’s worth MUCH more than what they’re paying. It’s illogical for them to pay less than its real value. It’s even illogical to think they’d pay exactly what it’s worth. Why would somebody bother buying a company if they were only going to break even?
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1. wat10000 ◴[30 Oct 25 19:57 UTC] No.45764585[source]▶
The reason anybody is willing to buy and sell anything is because there's no single "real value" of anything. Value is contextual. When the grocery store gives me a cake in exchange for $20, it's because the value of the cake, to them, is less than $20. Conversely, the value of the cake to me is more than $20, otherwise I wouldn't be buying it.

If you sell your business, it's because the value of the business to you is less than the purchase price. Likewise, the value to the buyer is greater than the purchase price.