Your day starts like any other. You are in a meeting or reading your e-mail. Then a message arrives. A competitor shows interest in your company. The question is simple but telling: “Have you ever thought about selling?”
You're shocked. Not because it comes out of the blue, but because you never really worked on it. You've built your business, helped customers, hired people, and borne responsibilities. And now it seems like someone just wants to take over the key to your company.
What do you do in such a situation? Is this an opportunity or a threat? How do you determine the value of what you've built? And how do you avoid making a decision under pressure that you will later regret?
In this blog, you can read what you can do best if a competitor signs up with a takeover bid. No hype or vague promises, but clear steps, negotiation techniques and practical insights for small business owners.
Acquisitions by competitors are becoming increasingly common. In many sectors, it is difficult to grow without extra staff, customers, or technology. For a competitor, your company can be the fastest way to gain market share or add a branch.
For you as an entrepreneur, the offer may come unexpectedly. Maybe you've just had a good year. Perhaps you are just reaching your limits. In both cases, if you get a serious offer, you should seriously know what you are worth and what you want.
Many entrepreneurs react impulsively to a takeover bid. They feel flattered or threatened. They say “yes” out of tiredness or “no” out of fear. Or they hire an advisor who is mainly focused on closing a deal quickly.
What is often missing is rest, overview and strategy.
The value of your company doesn't just depend on the numbers. Positioning, continuity, customer relationships and your role in the whole also play a major role. Assessing a bid is not a gamble, but an analysis.
Below are five crucial steps you can take immediately when a competitor shows interest.
Thank the buyer for their interest, but indicate that you take the time to review this properly. Ask for a written statement of intent or offer and don't promise anything substantive. Don't be tempted into substantive negotiations without preparation.
Why this works: It shows professionalism and prevents you from coming under pressure. You control the process and exude confidence.
Without a valuation, you don't know if the offer is serious. Have an independent party perform a business valuation. It not only looks at profit, but also at growth potential, dependencies, contracts and your role in the company.
Why this works: You gain insight into the real value of your company and prevent you from agreeing to a bid that is too low.
Do you want to quit completely? Looking for a financial exit but want to stay active for a few more years? Or do you want to grow with a partner on board?
Make it clear to yourself what you want in terms of time, money, commitment and responsibility.
Why this works: When you know what you want, you can make consistent choices. And that provides peace of mind and a better negotiating position.
Don't get stuck on one buyer. Discreetly check if there are other interested parties. Think of private equity, other industry peers or even investors from outside the sector. The more serious parties you speak to, the better your position becomes.
Why this works: Alternatives create pressure among the first buyer. This increases your negotiating power and can increase the value.
A sales process requires legal, financial and tax knowledge. Gather a team of advisors who serve your interests. Not only to avoid risks, but also to be stronger in the process.
Why this works: You prevent costly mistakes and exude authority to the other party. A good team pays more than it costs.
The way you conduct the conversation makes the difference between a standard deal and a deal you're really happy with. Chris Voss, former FBI negotiator, describes in Never Split the Difference techniques that are also ideal for business sales.
One of his most important principles is: never just agree to half. For example, if you think your company is worth 2 million and the buyer offers 1 million, you shouldn't automatically end up with 1.5. That's no deal, that's giving in without substance.
Instead, use calming tactics like mirroring the buyer's statements (“You say this offer is in line with the market...”) or ask calming questions like “How did you arrive at this amount?” By letting the other person talk, you get information and stay in control.
Why this works: Negotiating isn't about winning or losing. It's about understanding what the other person wants while defending your interests. Through techniques such as labeling, letting silence fall and provoking 'no', you can negotiate with more influence and peace of mind.
If you approach this process properly, it not only results in a better price, but also a better feeling afterwards. You prevent regrets, conflicts and surprises. You make choices that suit your future, and that of your team and customers.
You have more rest, more control and more room to play. And if the sale continues, you can be sure you got the most out of it.
Don't get hounded. Many buyers are putting pressure on the process: “We're in a hurry.” “Other companies are also in the picture.” “This offer is temporary.” Don't fall for that. You set the pace.
Time and information are your strongest weapons. Take the time to research everything. Get advice. Have documents checked. And ask the right questions.
Why this works: Exuding peace is powerful. It prevents you from making decisions out of fear or uncertainty.
You usually sell a company only once. It touches everything: finances, emotions, strategy, relationships. That's why it's wise to choose a process partner who helps you every step of the way.
At BestBonobos.com, we support entrepreneurs like you in selling their business. We provide the tools you need to sell professionally.
You remain in control. We provide an overview, structure and online guidance via the platform.
Have you received an offer or do you expect it to happen soon? Then take the first step now:
Whether you want to sell tomorrow or just three years from now, good preparation starts now.
An unexpected offer for your company is exciting, but no need to panic. With the right approach, it turns from a threat into an opportunity. You decide how to deal with this. You choose the pace, direction and conditions.
Don't get caught off guard. Don't get hitched. Make sure you are prepared. Then you will soon be able to look back on this phase in your entrepreneurial life with confidence.
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Then sign up below and discover how you can work towards successful sales with an overview, grip and trust.
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