How To Respond To An Unsolicited Offer To Buy Your Business
However genuine (and flattering) an unsolicited offer to buy your business can be, it needs to be treated with extreme caution.
This article covers 10 points you need to bear in mind when dealing with such offers.
1. Don’t trust the offer. Small businesses get offers like these all the time and 90% are fake (in some way, shape or form).
2. If the offer is from a competitor, the chances are that they are after information about your business. Competitors often make all the right sounds about how and why they want to acquire your business but, most often, they are simply after information. Even when they are “genuinely” interested in buying your business, remember that it’s a long, long road from an initial conversation to a signed contract …
Summary of the other points:
3. Appoint an expert to represent you.
4. Do not make the mistake of thinking that because you are smart and have built a successful business that you have the savvy to negotiate (or even talk) with the pros.
5. If the offer is from a business broker, the chances are they are just fishing.
6. If the buyer includes a figure in his offer, that’s a warning sign in itself.
7. Do not spend any of that money till you have received it!
8. One buyer is as good as no buyer.
etc. The full article is here.