We are in the middle of due diligence and the buyer is starting to chip away at our valuation based on minor operational variances they found in our inventory reports. How do we stop this re-trading process without blowing up the deal entirely?

Question

Tyler Smith · Accepted Answer

When a buyer begins to chip away at your price late in the deal, they are often reacting to underlying anxiety about operational risk rather than the minor variances themselves. To stop this re-trading cycle, you must use the Trust Creation Process to reset the relationship. Engage directly with the buyer's lead negotiator and listen closely to their specific concerns without becoming defensive. Frame the operational variance not as a structural flaw, but as a minor, manageable deviation that is fully covered by your standard operating procedures. Envision a clear, collaborative solution where you demonstrate how your inventory management systems can prevent these discrepancies in the future. Commit to a specific, transparent remediation plan or a minor, defined adjustment to the working capital peg rather than allowing a blanket reduction in the purchase price. By addressing the buyer's underlying fear with operational facts and an other-focused mindset, you can restore trust, protect your valuation, and keep the transaction moving toward a clean close.