THE UNSOLICITED OFFER

It happens almost every week. I get a call from a business owner who says the following: "We got an unsolicited offer to buy our business. What do you think I should do?" I give everybody the same advice. Here it is:

1.????Is it really an offer??It is probably not a genuine offer if somebody is emailing you out of the blue that you have no idea who they are. Most times, it is an invitation to have a conversation. Other times, it can be a competitor that may be genuinely interested or appear to be at the initial contact.

2.????Are they financially qualified to buy your business, and have they proven it to you??Most owners are afraid to ask this question, which may be the most important question to ask.

3.????Have you given them anything from your company, and hopefully, the answer is NO.?Never give somebody your financials just because they ask for them. Buyers need to earn the right to see the financials, and only at the right time.

Why do I bring this up? According to the latest?IBBA and M&A Source Market Pulse Report, a majority of business sales in 2021 occurred after the owner had received an unsolicited offer. And most owners are probably selling for a number less than they deserved (or hoped for) because their business was not in the optimal position to sell at that time.

We would be happy to have a conversation to help you prepare for unsolicited offers.?