One reason overpriced deals happen is simple:

The seller is selling risk.

Not intentionally, necessarily—but structurally.

If a business has:

• owner dependency,
• weak records,
• deferred maintenance,
• fragile margins,
• or inconsistent earnings…

the seller has lived with those risks and decided they want out.

The moment the buyer closes, those risks transfer.

If the buyer overpays and inherits risk, they’ve paid twice:

1. a premium on price, and
2. a premium on uncertainty.

That’s a dangerous combination.

And it’s where value gets destroyed fastest—because the new owner starts behind the curve.