How to Evaluate Offers from Potential Buyers

Receiving an offer for your business can be an exciting milestone, but not every offer is created equal. The highest price isn’t always the best deal – terms, structure, and the buyer’s intentions all play a significant role in achieving a successful exit.

Understand the Headline Price vs. Deal Value

A strong headline price can be tempting, but the deal structure determines how much you actually receive and when. Key considerations include:

• Payment Terms – Is the price paid in full on completion, or are there deferred payments or earn-outs?

• Conditions Attached – Are there performance targets you must meet to receive the full price?

• Working Capital and Balance Sheet Adjustments – Does the deal assume a specific cash or stock level at completion?

Assess the Buyer’s Intentions

The right buyer should align with your goals for the future of the business, employees, and customers. Consider:

• Will they retain your staff and existing culture?

• Do they plan to merge or rebrand the business?

• Are they financially secure and capable of completing the deal?

Look Beyond Price: Other Offer Factors

An attractive offer may include benefits that aren’t just financial:

• Speed and Certainty of Completion – A slightly lower offer with fewer conditions may be preferable.

• Future Role for the Owner – Will you be required to stay on for a handover or consultancy period?

• Reputation of the Buyer – Their track record with previous acquisitions can be telling.

Involve Experienced Advisers

An experienced M&A adviser can help you compare offers side by side, factoring in risk, tax implications, and the likelihood of completion. Legal and tax advisers should always be consulted before signing any heads of terms.

Create Competitive Tension

The best way to secure a strong deal is by having multiple interested buyers. This allows you to compare offers and negotiate from a position of strength, rather than accepting the first proposal.

Next Steps

If you are preparing for a business sale, take time to understand what a good deal looks like beyond just the price. Our team at ExitPlanning.co.uk helps business owners prepare for exit and attract the right buyers to maximise value.

Contact Us to discuss your exit strategy with our experienced advisers.