Buyers asking excessive pre-LOI questions often just research to replicate startups
Mark Givko · How to Build a Profitable SaaS in 6 Months and Sell it in 5 Days · Sep 25, 2024 · at 16:01
Mark Givko shares red flags for founders selling businesses on acquisition marketplaces like Acquire.com and Flippa.
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“If people ask too many questions, especially before the letter of intent, They're usually not particularly serious about it. There is this trend, not only on acquire.com, on Flippa and other websites, where people pay the monthly queue, whatever, and go on there just to do market research, to see what works, what doesn't work, and they are going to drill you on very sensitive issues, like actual numbers, and they're going to ask sensitive information, Without actually wanting to ever buy the startup, just to make a perfectly clear idea if your startup is something they would like to replicate over the next few months.”
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