Michael Poole

E: mpoole@pcecompanies.com

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In the world of business, it's not uncommon to receive unexpected offers to buy your company. When faced with such an opportunity, it's natural to feel a surge of excitement and curiosity about what lies ahead. However, before rushing into any decisions, it's crucial to take a step back and consider the value you have created in your business. Thomas Merton once said, "The biggest human temptation is to settle for too little." In this article, we will guide you through the process of evaluating unsolicited offers, helping you understand the importance of determining market value, finding the right buyer, and carefully considering price versus terms.

Determining Market Value

As the owner, it is essential to understand the true market value of your business. Take a moment to analyze recent transactions within your industry, including public stocks and acquisitions of similar private companies. By examining these benchmarks, you can gain valuable insights into ratios and multiples that directly apply to your own company. This knowledge serves as a solid foundation for negotiating a fair price and ensuring that you don't settle for less than what your business is truly worth.

Finding the "Best Fit" Buyer

Remember, if one buyer finds your company attractive and valuable, there is a good chance that others will too. It is crucial to identify the "best fit" buyer for your business. Consider potential buyers who align with your company's strategic interests or possess synergies that can enhance its growth potential. This search for the ideal buyer may even create a competitive bidding environment, driving up the purchase price and securing a premium offer. Don't limit yourself to the first offer that comes your way; explore all possibilities to maximize the value of your business.

Price vs. Terms

When evaluating an offer, it's important to recognize that price alone does not determine its attractiveness. "You name the price; I'll name the terms" holds true in this scenario. While a high purchase price may initially seem enticing, carefully examine the terms attached to the offer. Consider whether an all-cash offer holds more value than a higher-priced offer with extended payment terms. Additionally, factors such as employment agreements, non-compete clauses, and other terms should be evaluated to ensure they align with your expectations and contribute to the overall value you receive.

Navigating the Risk Point

Selling your business involves a complex process that demands time and resources. Negotiating final business terms can be challenging and potentially contentious, representing a risk point for you as the seller. You might be required to remain with the buyer for a specific period, making it crucial to protect your interests. Engaging the services of an experienced investment banker who possesses market expertise can provide valuable guidance. An investment banker will assist you in understanding market values and terms, ensuring that your interests are safeguarded during negotiations.

Leveraging Market Knowledge

Remember, selling your business without comprehensive market knowledge is like navigating blindfolded. Without a clear understanding of market dynamics, you may miss potential risks and opportunities tied to your decision. Acquiring market knowledge empowers you as the owner, enabling you to make informed choices that maximize the personal wealth tied to your private company. Don't underestimate the power of knowledge when it comes to unlocking the full potential of your business.


Receiving an unsolicited offer to sell your business can be an exhilarating experience. However, it's important to resist the temptation to settle for less than your business deserves. By carefully evaluating the true market value of your company, identifying the "best fit" buyer, and giving due consideration to price versus terms, you can navigate the sales process with confidence. The guidance of an experienced investment banker will further strengthen your position and increase the likelihood of securing a favorable deal. Remember, your market knowledge is the key to unlocking the full potential of your personal wealth tied to your business. Embrace this knowledge and make informed decisions that will shape your future success.

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Michael Poole


Michael Poole

Investment Banking

Orlando Office

407-621-2112 (direct)


407-621-2112 (direct)

407-621-2199 (fax)