Wasted conversations?

Until a year back, there were lot of takers for affordable housing companies. Most of them were backed by rich private equity investors or promoters who grew the ranks. Both often tend to be hungry for rich valuations and every buyer who came to approached them went back quite disappointed but definitely convinced that they weren’t businesses worth buying at 5 – 6x multiples. Today, some of these investors and promoters are okay with a 3 – 3.5x exit, but the buyers aren’t keen anymore. Whether banks or other NBFCs who were scouting for businesses to grab, have reached a scale organically that they don’t want to shell out any money now. That’s about four or five affordable housing companies on the block, with literally no takers. The times in business, when greed isn’t good!