Selling At The Right Price

Selling Your Business At The Best Price

A big part of a business intermediary’s job is to help determine the right price. Business owners often say, “everything is for sale at the right price.” This is very true, but not the way most people mean when they make the statement.

“The right price” needs to be right for the buyer as well as the seller. Too high a price will discourage potential buyers. At best, if the business is overpriced, an interested buyer will often “retaliate” by making an extremely low offer—knowing that the business probably has not received other offers.

The best strategy is always to set the price of the business at a fair and reasonable value. Buyers will typically look at 3-8 businesses before they buy. They will immediately recognize, and dismiss, a business that is overpriced. They think that the seller is unreasonable and don’t want to even try to negotiate.

Buying a business is a financial decision. Your business has to make sense, “by the numbers”—offering a reasonable return—or serious buyers will simply pass it by. A business intermediary can help you determine what the right price is, making it attractive to buyers who are comparing it to other investments.