What do you do if you only get low offers? 

Michael hardly looked like a killer negotiator. 

He was tall, soft around the edges, with black-rimmed glasses that provided the only sharp line on his face. He carried the unassuming air of a man more likely to be packing oranges for halftime at his kids’ soccer tournament than negotiating a multi-million-dollar corporate transaction. 

But there was more to Michael than met the eye. 

Several years ago, a large international corporation approached the company he led as CEO with an offer to acquire the business. What happened next is something few business owners achieve: Michael persuaded them to pay 50% more. 

The buyer’s initial offer was a classic low-ball bid. Rather than reacting emotionally or rushing to close a deal, Michael recognized it for what it was and calmly declined. 

He didn’t pound the table or issue ultimatums. He simply encouraged the buyer to keep looking. 

“I think you’ll find what we’re doing very interesting.” 

“We’d be happy to answer any questions.” 

“Perhaps it’s worth taking a closer look.” 

Over the months that followed, the buyer learned more about the business. They came to appreciate its strategic value, its growth prospects, and the opportunities ownership would create for them. 

The more they understood, the more they wanted it. 

When the deal was finally completed, the buyer paid an additional $10 million—roughly 50% more than their original offer. 

It was a better outcome for everyone involved. 

How do you get higher offers?

The story above is adapted from our forthcoming One Year In Advance Exit Playbook. While anonymized, it is based on a real transaction. A business owner Gavin advised genuinely increased the purchase price by approximately 50% after receiving an initial offer that significantly undervalued the company. 

We share it because it highlights a challenge many business owners face: They want to sell their business, and buyers are interested. But the offers coming across the table are simply too low. 

If that’s your situation, what options do you have? 

In this video series, we’ll walk through three of the most common paths available to owners facing disappointing offers. 

Option 1: Use an earn-out structure

Option 1: Use an Earn-Out Structure 

An earn-out allows a portion of the purchase price to be paid in the future if the business achieves agreed-upon performance targets after closing. 

In some situations, an earn-out can bridge the gap between what a buyer is willing to pay today and what an owner believes the business is truly worth. 

In the video below (and this article), we explain when earn-outs make sense, when they don’t, and the risks every owner should understand before agreeing to one. 

Option 2: Consider vendor financing

Vendor financing occurs when the seller finances part of the purchase price, allowing the buyer to pay a portion of the consideration over time. 

This approach can sometimes unlock a higher overall valuation while making the transaction easier for the buyer to complete. 

You can learn more about vendor financing in the video below (or in this article).  

Option 3: Walk away

On rare occasions, the best solution is to walk away, like what Michael did.  

By refusing to accept an offer that didn’t reflect the value of his company, he gave the buyer time to better understand the opportunity. As their conviction increased, so did their willingness to pay. 

Walking away isn’t always the right answer. But when a buyer genuinely wants what you have, patience can be one of the most powerful tools available to a business owner. 

We explain when to use this strategy in the video below.