Why Most Business Owners Leave Money on the Table

If you’re thinking about selling your business, even if the exit is years away, there’s one mistake that nearly guarantees you’ll walk away with less than your company is worth.

It’s selling to the first (or only) buyer who calls.

That one private equity firm that keeps emailing you?

The competitor who says they’re “serious” and “ready to close fast”?

The strategic acquirer who came highly recommended?

They might genuinely want to buy your business, but the second you engage in a one-on-one negotiation, you give up the single greatest source of leverage: competition.

The Illusion of a “Great Offer”

Here’s what most founders don’t realize:

1. There’s no fixed price tag on your business.

2. Your company is worth what someone is willing to pay for it. At that moment, in that market, with that set of alternatives.

When you talk to one buyer, you’re not discovering your company’s real value. You’re just reacting to a single number. And once you’ve shared financials, taken the dinner, and “talked numbers,” it gets awkward to walk away.

So what do most business owners do?

They talk themselves into the deal.

That’s how companies worth $30M sell for $20M.

That’s how founders give up cash for seller notes they didn’t ask for.

That’s how deals get done that feel… off.

What You Should Do Instead

If you take away just one thing from this post, let it be this:

Run a formal, competitive process.

Even if you don’t have 20 buyers lined up, a structured process allows you to:

• Control the timeline and deadlines

• Set clear expectations from the start

• Protect your information (and optionality)

• Prevent wasted time with unserious buyers

• And most importantly: create tension that drives price and terms in your favor

Think of it this way: would you sell your house without listing it on the market, just because one person knocked on your door? Probably not.

Your business deserves at least the same strategy, if not more.

In M&A, leverage is everything. And leverage comes from choice.

The business that runs a tight process with five interested buyers will always outperform the one who “talks deal” with just one. Every time.

If you’re even thinking about an exit down the line, now’s the time to prepare the right way, before a buyer comes knocking.