THE BUYER’S EQUATION
Throughout our exposition of the Roadmap method, we have given special emphasis to the seller’s equation—the total assembly of factors that motivate an owner to sell her company. Conversely, we need to give consideration to what we could call “the buyer’s equation.” Here is the principle that concerns us: In any transaction, value is determined not just by the product that is being sold but just as much by the person who is making the purchase.
Figure 9-2. Different valuation methods may produce different results.
Take an old van with 100,000 miles on its odometer and a few battle scars in its bodywork. In the normal course ...
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