Negotiate the best price for your business!

How to Negotiate the Best Price When Selling Your Business

Selling your business is likely the biggest financial transaction of your life — and negotiating the right terms can add (or cost) you hundreds of thousands of dollars. Whether you're already in talks with a buyer or just thinking ahead, understanding how negotiation works is key to getting what your business is truly worth.

And here's the truth: most small business owners leave money on the table simply because they weren’t prepared.

It Starts Before the First Offer

Negotiation doesn’t begin when the buyer sends you a letter of intent. It begins months — even years — before that.

Here’s how to set yourself up for success:

• Get your financials in order — clean books build confidence.
• Have a professional valuation done so you know your baseline.
• Identify areas where your business stands out: strong margins, repeat customers, low owner involvement, or growth potential.
• Create a detailed Seller’s Packet that answers common buyer questions before they ask.

The better prepared you are, the more leverage you have.

Know What Buyers Value Most

Different buyers value different things. Strategic buyers may care about your customer base or location. Private equity firms may focus on recurring revenue and growth. Individual buyers often want a business that can run without the owner.

• Understand your buyer's goals — and position your business as the solution.
• Highlight future potential (not just past performance).
• Emphasize operational systems, recurring revenue, or anything that reduces risk.

Remember: price isn’t everything. The terms matter just as much — if not more.

Negotiate More Than Just the Purchase Price

The best deals are structured, not just priced.

Here are a few levers you can negotiate beyond the top-line number:

1. Earnouts — Get paid more if the business hits future targets.
2. Seller financing — Lend a portion of the sale price to increase the total.
3. Working capital — Negotiate what’s included or excluded in the deal.
4. Non-compete terms — Keep them fair, but not overly restrictive.
5. Transition period — Agree on how long you’ll stay on post-sale — and get paid for it.

Having an advisor or broker in your corner during negotiations can help you push for stronger terms while keeping emotions out of the deal.

Final Thoughts

Negotiating the most for your business doesn’t mean being aggressive — it means being prepared, confident, and informed. The stronger your business looks on paper and the better you understand your buyer, the more likely you are to walk away with a great deal.

Thinking about selling your business soon? Let’s talk. We’ll help you position your business, attract serious buyers, and negotiate the deal you deserve.

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