eh, I think in this case, 'pride' is really the other party saying 'this negotiation is not worth my time'. I know a while back I got some interest in someone buying out prgmr.com. Well, I listened to them, and they wanted to offer me a years revenue. I refused, of course, and broke off negotiations, but then I did some research, and come to find out, in my industry, that's a pretty average price.
Why would anyone sell a company that's doubling every 6 months for a year's take? it seems quite irrational to me. But, like I said, it's normal for this industry. Now, knowing what I know now, my answer wouldn't change, I mean, the other party (and the market) obviously placed a dramatically lower value on my company than I did, but if I knew this was fair market value, I'd have said no to their initial feeler before hearing their offer. Of course, I'll sell, for a price... but my price is so far above the 'fair market value' of the company that for all practical purposes, you can think of me as being completely unwilling to sell.
I mean, like everyone, I have my price, but I really, really like my company; my price is a /whole lot/ higher than one year's take.
so, uh, yeah; I think a lot of times breaking off negotiations upon hearing an 'offensive' offer is the result not of a wounded pride but of a clear misunderstanding of the market value of the good at hand by one or both parties.
If I'm willing to sleep with you for a million bucks and no less, if you offer me $100, it's probably not worth my time to try to talk you up. In that case, assuming that you are unable or unwilling to pay me the million bucks, there is /no difference/ between me being willing to sleep with you for a million bucks, and me not being willing to sleep with you for any amount of money at all.
Why would anyone sell a company that's doubling every 6 months for a year's take? it seems quite irrational to me. But, like I said, it's normal for this industry. Now, knowing what I know now, my answer wouldn't change, I mean, the other party (and the market) obviously placed a dramatically lower value on my company than I did, but if I knew this was fair market value, I'd have said no to their initial feeler before hearing their offer. Of course, I'll sell, for a price... but my price is so far above the 'fair market value' of the company that for all practical purposes, you can think of me as being completely unwilling to sell.
I mean, like everyone, I have my price, but I really, really like my company; my price is a /whole lot/ higher than one year's take.
so, uh, yeah; I think a lot of times breaking off negotiations upon hearing an 'offensive' offer is the result not of a wounded pride but of a clear misunderstanding of the market value of the good at hand by one or both parties.
If I'm willing to sleep with you for a million bucks and no less, if you offer me $100, it's probably not worth my time to try to talk you up. In that case, assuming that you are unable or unwilling to pay me the million bucks, there is /no difference/ between me being willing to sleep with you for a million bucks, and me not being willing to sleep with you for any amount of money at all.