We’d been looking for a pre-IPO Anduril deal for a while when a broker called with shares at a specific price. Our first reaction was yes. Then we checked the numbers and found the seller wanted double what private equity firms had paid 30 days earlier. We passed, and offered to pay the prior round’s price instead.
The seller was counting on the hype. We could have done the deal, and plenty of people would have invested with us, but that’s not how we operate. You have to know what you’re paying, know the market, and resist the urge to get in when there’s a lot of hype. There was no better offer available, so the right move was to wait until things slow down and a seller is willing to accept a lower price.
Key points
- The Anduril shares were offered at double the price of a round 30 days earlier.
- TTI offered to pay the prior round’s price instead.
- Hype is not a reason to overpay.
- Sometimes the best move is to wait for a more motivated seller.
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