The ability to move quickly can be crucial in successfully closing a deal. A large part of that means having financing ready so you can swiftly respond to the seller’s decision.
I was reading a post about Steve Ballmer’s $2 billion acquisition of the LA Clippers that illustrates why having your financial package prepared is so important.
The author writes: “While there are rumors that other groups may have been willing to pay as much as $2.5B for the team, the risk of waiting was too high. Ballmer was willing to pay cash and quickly. The other groups were still putting together their financing options.”
While others were still scrambling, Ballmer was able to hand over cash right away. Like Shelly Sterling, the wife of Clippers owner Donald Sterling, sellers find security in cash offers and have confidence in buyers who are capable of executing a deal immediately. While all deals need not be cash offers, being ready to execute the deal without delay can help a lower bid beat out a higher price.
For more advice on how to be the preferred buyer, read my post “Be the Preferred Buyer – Have Your Ducks in a Row”