A few red flags (I know nothing about startup acquisition myself though).
1) Time pressure to have the deal happen quickly (that's not your fault)
2) 6m vs 2m is a big difference. I would be very careful. I think asking for a fixed price (and letting them worry about how quickly they can pay back their lenders) is better.
Their price difference is way too fuzzy.
3) "something they said was very unlikely given their current projections" yeah... Look, then they should be fine accepting a deal of say 4.5m (or whatever), because according to their current projections, they will end up paying that amount anyway.
If they refuse, then you need to ask yourself why they are doing so (perhaps they really do expect to later buy your company for $1).
4) Get your own lawyer. Their lawyers are for their interests, not yours.
Personally, the thought of not even knowing how much you are being bought for (and that it could be dramatically less based on "X reason") is very bad to me.
Comments
A few red flags (I know nothing about startup acquisition myself though).
1) Time pressure to have the deal happen quickly (that's not your fault)
2) 6m vs 2m is a big difference. I would be very careful. I think asking for a fixed price (and letting them worry about how quickly they can pay back their lenders) is better. Their price difference is way too fuzzy.
3) "something they said was very unlikely given their current projections" yeah... Look, then they should be fine accepting a deal of say 4.5m (or whatever), because according to their current projections, they will end up paying that amount anyway.
If they refuse, then you need to ask yourself why they are doing so (perhaps they really do expect to later buy your company for $1).
4) Get your own lawyer. Their lawyers are for their interests, not yours. Personally, the thought of not even knowing how much you are being bought for (and that it could be dramatically less based on "X reason") is very bad to me.