Selling your business may be the biggest financial decision of your life. But too often, owners shortcut the process — and leave millions on the table.
It happens more often than you’d think: a buyer approaches over lunch, at a conference, or even during a round of golf. The offer sounds tempting, but without a competitive process, sellers give up the leverage that determines price, terms, and timing.
Case in Point: The Golf Course Offer
A few years ago, a business owner told me his partner wanted to accept an offer he’d received on the back nine with a private equity investor.
No process. No competition. Just a handshake on the fairway.
Fortunately, their long-time lawyer gave them critical advice:
“If you have one offer, you have no offers.”
They reached out to us. We launched a full sell-side process. Together, we built a structured, competitive sale process that included:
- A compelling company story and differentiators in a tailored CIM
- A list of 150+ vetted buyers with proven acquisition criteria
- A clear timeline designed to create urgency and competition
The result? Multiple offers, stronger terms, and the ability to choose the right buyer – not just the first one.
Why “One Buyer” is a Red Flag
With only one buyer, they hold all the leverage:
- No urgency to close
- No incentive to offer favorable terms
- Plenty of room to chip away at value during diligence
That imbalance can quietly cost sellers millions – often without realizing it until it’s too late.
What this Means for You
Whether you’re a business owner or a legal advisor guiding a client, remember: the first offer might feel like momentum – but it’s often leaving value on the table.
Before saying yes:
- Talk to Your Legal Advisor: Before engaging further with the buyer, consult a trusted M&A attorney. They’ll help assess the offer’s structure, identify potential risks, and ensure you don’t inadvertently give away leverage.
- Engage a Professional M&A Advisor: An experienced advisor can help you evaluate the offer in context and run a structured process that attracts multiple qualified buyers.
- Don’t Rush the Process: Time creates leverage. A structured sale process creates urgency, competition, and optionality – leading to better price, terms, and alignment with your long-term goals.
- Protect Confidentiality: Avoid sharing sensitive information too early – let a professional intermediary manage buyer communications.
- Know Your Value: A well-crafted company story, backed by data, shapes how buyers perceive and price your business.
Let’s Talk
If you or your client is considering a sale or even just fielding interest – it’s never too early to start the conversation.
