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There will always be a risk that you are going to disclose information that they could potentially use against you but people tend to overrate this risk. The bi
by mischaell 15y ago
There will always be a risk that you are going to disclose information that they could potentially use against you but people tend to overrate this risk. The biggest risk comes from continued distraction in a deal process affecting the focus of your team on execution.
I don't think your deposit idea is realistic but I might be wrong. Here is what I would do: Ask them for a hypothetical bid and their valuation model (factor assumptions) behind it. This way you could model their bid on your real data without having to disclose it and see whether you would be happy with the price.
If they are not prepared to give anything away without more information there is a high chance that their behaviour is predatory and you should pass.
- forcer 15y agoThanks. This is really helpful. I have been thinking about the concept of valuation model, but in a different wording (like previous commenter esun told , our revenue is between X and Y etc). I guess asking them to provide some kind of valuation based on what their growth strategy, assumptions on existing revenue are will be more helpful indication whether they are serious, rather than extracting deposit which may be discouraging and also legal burden for them.