SOP #51 — "Always lowball to anchor" is wrong

SOP #51 — "Always lowball to anchor" is wrong

Myth: an aggressive low first offer wins. Correction: on quality assets a lowball gets you ignored and burns your spot in the deal flow. Anchor with structure, not insult:

1. Justify your number with the normalized P&L, not a percentage off asking — show your math.
2. Anchor on terms, not just price: earnout, holdback, staged payment tied to traffic retention.
3. Identify the seller's real motive (speed, clean exit, top-line number) and trade on it.
4. Make your first offer credible enough to keep exclusivity — a serious buyer gets diligence access.
5. Reserve price cuts for documented findings during inspection, not opening theatrics.

The goal is to win the right asset, not the negotiation game. Anchor on reasoning the seller can't dismiss.

Save this — run it every deal.