Choosing between buyers when the highest is not the best
With more than one offer on the table, the highest headline is frequently the worst deal. What matters is how much lands in your account at close, and how likely the deal is to get there at all.
Compare certain money
Take each offer down to what you receive on the day, with nothing conditional in it. A higher price with a larger earnout, a bigger working capital peg and a financing contingency can easily land less in your account than a lower offer paid in cash.
The six rows that decide it
Probability of closing
Weigh every offer by how likely it is to complete. An unverified buyer at a high price with a financing contingency and no industry experience is not a better offer than a verified cash buyer 5% lower. It is a more expensive way to spend two months.
You lose the exclusivity period, the momentum, and the other buyers who moved on. The next buyer also asks why the last one walked.
What a strong buyer looks like
- Financially verified, with capital confirmed rather than claimed.
- Has run something, or has a manager who has.
- Asks specific questions about specific numbers.
- Gives reasoning with their offer rather than just a figure.
- Does what they said they would do, on time, twice in a row.
Running two buyers at once
Legitimate up to the LOI, and normal. Be straight that there is more than one offer, and never share amounts or names. Once you sign an LOI you are exclusive, so keep the second buyer warm rather than strung along, and tell them the position honestly.
Telling the other buyer no
Say it plainly and say why, without the amount. Buyers who lose well come back if the first deal collapses, and a specific reason lets them make a better offer on the next business. A vague brush-off guarantees they do not.
Close rates by buyer verification status and by financing route need your data before this article quantifies the risk.