What sellers often miss
Many owners view competing buyers as a means of driving a higher purchase price. While that is certainly a benefit, competition often affects deal terms even more than valuation. Escrows, working capital provisions, earnouts, employment agreements, transition periods, and closing certainty frequently improve when buyers know they are competing against credible alternatives.
The takeaway
A single interested buyer may validate that your business is valuable. Multiple interested buyers determine just how valuable it is. The best outcomes rarely result from negotiating with one buyer. They result from giving several qualified buyers the opportunity to earn the right to acquire your company.
Illustrative, not your deal. Where the book uses dollar figures, they are there to show how something works, not to describe your business. Your banker, your accountant, and your attorney will put real numbers to your own situation. Full note.
Terms this chapter uses
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