When selling your business, you only need one motivated buyer with whom you can agree on the terms of your sale, but finding the right one can take some effort.
One way to improve the odds of finding the right committed buyer is to solicit multiple bids. Additionally, there are other reasons why it can be advantageous to have multiple bidders when selling your Florida business.
Advantages of Having Multiple Bidders in Your Sale
One of the biggest advantages to having a multiple-bid scenario is that it can result in a higher price for your business. By initiating a bidding war between interested parties, you may be able to drive up the price of your sale.
Second, engaging multiple bidders puts you, as the seller, in the power position. It can give you leverage to make some demands in terms of the sale’s timeline or other contract provisions.
Third, it enables you to have backup buyers if your preferred bidder decides to duck out of the transaction. Knowing you have alternatives may also motivate your buyer to follow through on the deal quickly.
How to Evaluate Multiple Bids When Selling Your Business
Gathering multiple bids is advantageous, but how do you go about comparing those bids once the offers are in?
Chances are good the bids will not align for an exact apples-to-apples comparison. With your attorney, you will have to evaluate and potentially negotiate the terms of these competing offers.
As you do so, consider the buyers’ motivation and what brings them to the table in the first place. Look also at the details of their closing conditions. It’s important to evaluate the deal on the whole, rather than focus on a single issue. Your attorney will provide invaluable guidance in this regard.
If you’re considering selling your Florida business, our commercial law team at Silverberg|Brito, PLLC can help. We have extensive experience assisting our clients with mergers and acquisitions and are ready to help you with your sale. Contact us today to schedule a free consultation.