What to do if Someone Offers to Buy Your Business – Straightforward Advice from the Experts
You’re going about your business as usual and then the phone rings, or an email drops into your inbox – “We’ve been looking for an acquisition and we think your company would be a great fit, we’d love to talk”. Now your suddenly Googling, ‘what to do when someone offers to buy your business’… because it’s not an everyday occurrence and it might not be something you feel particularly well prepared for.
The very first thing to say is, well done! You have clearly built a successful business that is getting attention and is, on the face of it, an attractive acquisition target. It’s great that someone sees potential in what you have built, they may make you an offer that appears good and tell you that you need to move quick. But there are some important questions you need to answer first, for example, am I ready to exit? Is our business ready for sale? How much is our business worth? Is now a good time to sell?
With so many questions to answer, coupled with so much excitement around an approach, it is perhaps understandable that many business owners rush into making a decision, but we would say…
Don’t rush into it…
It may be the only approach you have had, but don’t let that hurry you into making commitments you are not ready for. We would suggest being non-committal in your initial response. Thank them for their interest and suggest to them that you will need time to properly consider the approach and will come back to them in a couple of weeks.
Give yourself time to properly consider if this is the right time for you and the business. Get some advice and have a conversation with a reputable corporate finance company who can help you explore your situation and answer some of those questions. You may find the idea grows on you as you think about it, or that what initially seemed like a brilliant idea seems less desirable after giving it some thought.
Remember, turning this approach down doesn’t mean you won’t be able to find an interested party later down the line when the time is right.
Flattery is cheap…
It is really easy to be flattered by an approach – in fact any decent approach will be aiming to do exactly that – especially if the approach is from a well-known company. But remember that flattery is cheap, and too often in these situations it can actually become costly when it is the driving force behind negotiations.
A company or investor approaching you is a strong indication that your business is an attractive proposition. If it coincides with your desire to sell, or even triggers that desire in you, then it should be the catalyst to take it to market properly and not be caught in the headlights thinking you only have one option.
Only having one option and getting caught up in the flattery of an interested party will lead to concessions being made in negotiations that do not need to be made.
Don’t try to go it alone…
The temptation to enter into discussions without introducing a third party will be strong – after all, you probably have very good negotiating skills. But there is so much more to selling a business than people often realise: the personal attachment to the business, understanding valuation methodologies and the mountain of paperwork required for due diligence to name a few.
Remember that companies and investors who make approaches like this will typically be making multiple acquisitions every year – it is certainly very unlikely to be their first. So, make sure you have an experienced company like Entrepreneurs Hub on your side to ensure you are fully prepared to maximise the value and terms of the deal.
Competition is one of the biggest drivers of value…
Even if you ultimately intend to sell to the company or investor who approached you, it is essential to introduce an element of competition. This is not a disingenuous tactic; it is part of any sensible company sale strategy. There are three reasons why you need to introduce some competition.
1. Going through the exercise is valuable as it will help you to fully understand what is attractive about your business, there may be some areas highlighted that you hadn’t thought of and put a different complexion on the offer you received.
2. It is important in the negotiation phase to know, and for the acquirer to know, you have a plan B. It’s an incentive to do a good deal and not to stall.
3. You might just uncover a better option – someone who is willing to pay more and offer better terms, or that may even be a better home for your business.
What next?
We hope that the above has given you some top tips on what to do if someone offers to buy your business. If you have had an offer to buy your business, we would seriously encourage you to get some advice. Entrepreneurs Hub offer a free, confidential meeting – with no obligation – where we can discuss your situation, provide a guide valuation range and help you make the ‘what next’ choices. Even if you haven’t had an approach, but are considering your exit options, you can still get in touch and we would welcome the opportunity to do a review with you to assess saleability and potential value range. You might also be interested to read our Guide to Selling your Business in 2025.
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FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…