The spread kind of can be counted twice: if you tell management “we’re going to make $100k (10% return) in profit this year” and you end up paying $1000k and selling for $900k instead of $1100k like you planned … management is going to be less than pleased.
They fronted you $1M with the expectation they would make $100k. Now they are losing $100k. So their own projections are screwed by $200k.
They fronted you $1M with the expectation they would make $100k. Now they are losing $100k. So their own projections are screwed by $200k.