The One Mistake Costing Business Sellers Millions: Why You Need a Competitive Auction
One buyer = Zero leverage. It’s a simple truth in the complex world of selling a business.
Many sellers make the fatal mistake of focusing on a single interested buyer, eager to secure a deal. They get locked into a Letter of Intent (LOI) prematurely, thinking they’ve found “the one.” But this is where your leverage vanishes.
As experts in business sales, we see this pain point constantly: sellers getting locked into a low price with one buyer and having no “Plan B.” They’ve signed away their right to negotiate with others, and the buyer knows it.
The LOI Trap: Where Leverage Goes to Die
The source insight is clear: Your leverage is greatest before you sign a Letter of Intent (LOI). Once you sign, you are exclusive. That exclusivity period is when the buyer holds all the cards. They know you can’t talk to anyone else, and they can slowly chip away at the price and terms during due diligence.
The Solution: Create a Bidding War
So, how do you avoid this trap? A professional broker creates leverage by negotiating with multiple parties simultaneously before exclusivity kicks in. We create a competitive auction.
Imagine a scale tipping in the seller’s favor, with multiple eager buyers on the other side. That’s the power of a competitive auction. By forcing buyers to compete on price and terms, you maximize your final sale price and secure the best possible deal.
The moment you sign an LOI, your leverage vanishes. Don’t let that happen. We create a competitive auction before you sign, forcing buyers to compete on price and terms.
Don’t settle for zero leverage. Create a Bidding War. Contact us today to learn how we can help you maximize the value of your business sale.
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