A few months back, I was working with a real estate investor putting together a multi-million dollar commercial project that was seeking a partner. It took months of searching to finally come up with a potential partner which made it beyond initial discussion. The potential partner came back with a Proposal which would have made my client nearly one million dollars in profit within two years. At that time, there had not even been a shovel in the ground, and it appeared that the hours of work we had put in were going to pay off for all concerned.
My client turned it down and walked away. He was looking long-term and felt that his team’s contributions were worth significantly more than one million dollars even though they had not been executed. I see situations like this on occasion, where a business or real estate opportunity is attractive, but not positioned for mutual benefit.
The below linked article is a glaring example. It describes a situation for a successful business operation with a current owner not healthy enough to continue on. The challenge is that the owner is not easily able to find a person or entity able to continue under his current methods of operation. I’m seeing a similarity between the scenario in the article and the situation I had with the investor. When the buyer needs to start by doing things a certain way they did not create, it can be a problem.
There are lessons to be learned from these scenarios.
https://www.hourdetroit.com/drinks-beverages/schramms-mead-seeks-a-successor/
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