The Flattering Unsolicited Offer

We often see it in practice: An entrepreneur receives an unsolicited offer for his business, frequently from a competitor or a customer. The surprise is great, the offer flattering, and before you know it, negotiations begin.

However, what is often overlooked: It’s just one offer—without benchmarking or market comparison. Few would sell a house or car without multiple offers. Why act differently with your life’s work?

A structured sales process creates competition, transparency, and comparability. Only this way can the true market value and the best offer (not merely what a buyer is willing to pay) be determined. Equally important is the comparison of different transaction structures and the cultural fit with the buyer.

Moreover, a broad process significantly strengthens your negotiating position. Those with alternatives negotiate from a position of strength; those without quickly end up on the defensive side. In rare occasions, the first offer may ultimately turn out to be the best—but you’ll only know after testing the market.

In M&A advisory, we often talk about the “anchor effect”: the first offer sets a psychological benchmark that’s hard to adjust later. Entrepreneurs should be aware that a structured process not only enhances the price but also improves buyer quality and deal structure.

In short: A good offer deserves thorough scrutiny—and comparison with others.