Video 7 – Receiving An Offer From A Competitor That Is Not In Writing.

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Rob:

I have lost track of the number of occasions I’ve been approached by a complete stranger who’s a business owner saying, “I’ve got an offer from a company, usually a competitor.”

Steve:

Yes.

Rob:

And then I ask, “Can I have a look at the offer,” and there’s nothing in writing. So what’s your take, guys, on someone coming to us with an “offer”?

MIke:

Well, we cover this in the MasterClass obviously in the previous slides that you will have seen. For us, there’s two factors here. Number one, if someone’s approaching you off market, then it’s very rare that you’re going to get face value, and it hasn’t had the benefit of testing the market to see what the value of your business is.

MIke:

And number two, there’s no competitive tension. And if you think about the way that we work, it’s a very specific way to make sure that we test the market for value. And then we use that value test in amongst those people that are interested in your business to drive that competitive tension to the advantage of our client.

MIke:

If someone’s coming to off market, you have neither of those things, you’re going to get a lower price.

Rob:

And we can uplift by over 50%, 52.9% over the last five years just by going up to market. Steve, you got another take on it?

Steve:

Yeah, and I think I’m with both of you. I can think of three specifics I’ve worked on over the last two or three years where there’s been a pre-market offer on the table. On each of those, from memory, the first, I think we uplifted over the offer that had been made by 40 plus percent. The second, it was the best part of 50 plus percent. And the most recent we’re working on actually, it’s three times what was potentially on the table. Well, not potentially, what was on the table, at the point of which the client came to us.

Steve:

You’ve heard me say before in the events, it’s like somebody arriving at the front door of your house offering to buy your house and guaranteeing you they’re going to give you a fair price, so there’s no need to put it on the market. Nah, no.

Steve:

Top tip, they’re lying.

Rob:

Or they’re mistaken. Don’t want to be sued.

MIke:

Or they’re opportunistic.

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Alternatively, If you would like to discuss a potential business sale with one of our Client Directors, please either call Amanda on 0118 959 8224, email agale@evolutioncbs.co.uk or Make An Online Enquiry.

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