When Selling Your Company, Never Do This

We always advise sellers to not put a price on their business. Not in your teaser, not in your CIM, and nowhere else. Rather, we think they should build demand for the business and then solicit bids.

If a potential buyer presses hard for a price, we suggest responding verbally with a range of your expectation “based on what the market and our advisors have indicated thus far.” That range should be the lowest you would ever possibly take and something much higher, higher, in fact, than you think anyone would ever pay for the business.

GROW and SELL Advisors, wholly-owned by Traversi & Co., LLC, is a premier sell-side M&A advisory firm – a boutique investment bank – serving the lower middle market.  Visit us here.

For a short video clip on this topic, click here.