Multiple Offers for Multiple Transactions

This content is for Premium Plus and Premium members only.
Log In Register
Print Friendly, PDF & Email

Identification

This strategy is used by cash buyers in semi-differentiated product markets which are in competition with a financing buyer or a buyer with less resources. The tactic is to make multiple offers on different targets that are all contingent on one thing we want. This is a very powerful position to be in and may form an entire business model for many companies. As they say, cash is king.

Example

A common example is real estate offers made on multiple-unit developments. Consider a condo development: one can make two offers (“I will buy units 1 and 2, if you price them x and y respectively” – x and y being aggressive prices, as there is a signal of cash buy). This shifts leverage away from a financing buyer.

Solution

Avoid getting “played” by distinguishing your difference and making it clear that your financing is a cash equivalent. You will have to plan and be able to move fast.

Search Tactics

Tactics Engine

Tactics Engine Main Page