One of the most common missteps owners make when selling their business is getting drawn into a private, one-sided deal. 

These situations usually arise when an acquirer approaches you directly and encourages you to negotiate without putting your business on the open market. On the surface, it can feel flattering [maybe even fortuitous] especially if you’ve been wondering whether it might be time to move on. And yes, a private approach can seem like a simpler path. 

But the reality is often very different, and potentially costly. 

 

why private deals can hurt you 

 

When a buyer knows they’re the only one at the table, there’s no competitive pressure pushing them to put forward their best offer. Without that tension, terms tend to be weaker, conditions can become more one-sided, and owners may end up giving away more value than they realise. 

 

how owners get drawn in 

 

Most private deals start innocently enough. Someone from the interested business reaches out, praises the strength of your operation, and suggests a conversation. You meet, swap a few numbers, and before long it all feels like a natural and promising fit. 

But somewhere along the way, you’ve stepped onto a path that’s hard to reverse. 

 

the risk of sharing too much 

 

In these early “friendly” discussions, owners often [without meaning to] give the acquirer information that weakens their own negotiating position. Details about margins, operations, staff, weaknesses, or plans can all be used to anchor a lower offer later. 

And the more emotionally invested you become in the idea of selling a business, the easier it is to reveal things you shouldn’t. Once you’ve started picturing life after settlement, strategic thinking tends to slip, and deals can move quickly before you have properly considered your options. 

Without other buyers in the mix, there’s no way to create a sense of urgency about progressing the deal or create competitive tension to encourage them to enhance their offer. 

 

how to avoid the trap 

 

Savvy sellers steer clear of one-sided deals by creating a competitive market for their business. 

Listing your business formally, or otherwise making it available to more than one buyer is the best way to test the seriousness of any unsolicited approach. If the original party walks away once competition enters the picture, it’s a strong sign they may have been fishing for information rather than making a genuine play. 

 

get someone independent in your corner 

 

If you still want to negotiate with a single party, make sure you have an experienced business-sale advisor involved. A third-party specialist levels the playing field, protects your interests, and keeps the process objective. They can help you avoid emotional pressure points and make decisions based on overall value, not momentum and emotion. 

 

we’re here to help 

Unsolicited buyer interest is far more common than most owners realise. It’s not something to dismiss outright, but you do need to approach it with care and make sure you’re protecting the value you’ve built. 

If you’d like to learn more about building a more valuable business or navigating the sale process, you can contact me at b.dean@businessdepot.com.au or give me a call on 0417 886 352. 

 

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