Selling A Business? Lower Your Price To Sell For More Money

Price isn’t everything, argues Jason Fraler and goes on to explain that it’s the deal structure which determines the amount of money you make from the sale.

High price gets you bragging rights, but doesn’t necessarily mean most money in your pocket. In fact, it’s positively unwise to chase headline price at the expense of the rest of the terms in the deal.

Whether you are a buyer or a seller in the high stakes game of mergers & acquisitions, you are going to spend an inordinate amount of time thinking and talking about what price you pay (or receive) for the deal. Rightfully so. Price is tangible; you can touch it and feel it. There’s also the ego component of price, the proverbial scorecard in M&A. It is not uncommon to hear a buyer, seller or even advisor pound their chest about a valuation that they attained. Don’t get me wrong, I engage in this wildly fun and intellectually stimulating banter all day, every day—and love it. But the truth is, price isn’t everything.

Those of us who do this for a living know that beyond valuation, structure and terms are other areas which define a deal, and where you can make or lose a lot of money. The right question is not, how much did the deal go for? Rather, we should be asking: Was it a good deal? Read more

The good news is that if you’re not convinced, and still want to chase price, you can get an instantaneous sale and  double your valuation here.