Founder Alert: You’re About to Get an Offer to Sell
In this video, Kirk of Candor Advisors outlines what founders should know when private equity or corporate buyers come knocking. From handling early outreach to protecting your information, he shares simple, practical guidance to avoid common mistakes and stay on solid ground during the first steps of a potential sale.
When a Buyer Reaches Out: How Founders Should Respond to Unsolicited Interest
If you’re a founder running a successful business, it’s only a matter of time before a buyer reaches out. With trillions of dollars sitting in private equity and private debt funds, investors are actively seeking high-performing businesses—just like yours.
That first email or call can be exciting. But it can also be a distraction. Here’s how to stay focused and respond with confidence.
1. Understand Who You’re Talking To
The first person to contact you is rarely a decision-maker. They may be a junior analyst or business development rep. Their job is to source deals, not negotiate them. Be polite but cautious. Share limited information and avoid getting pulled into long discussions.
2. Protect Your Information
Before you send over anything, ask for a signed confidentiality agreement (CA) or non-disclosure agreement (NDA). If possible, include a non-circumvention clause to prevent them from poaching your team or sharing your data. Even with an NDA in place, don’t disclose pricing, customer lists, or employee names.
Why? Because if they don’t buy your company, they might buy your competitor—and now they know too much about you.
3. Prepare Your Numbers
If you’re open to a conversation, have your financials ready. That includes:
Top-line revenue
Bottom-line profit
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization)
A current balance sheet
Trailing 12-month (TTM) results
This information allows a buyer to give you a ballpark valuation range. You don’t need to build a full data room, but you should be able to answer basic financial questions quickly and clearly.
4. Don’t Go It Alone
Even if you’re not ready to hire an investment banker or deal attorney, don’t try to handle this alone. At the very least, consult with someone who has been through a sale. Tap your CEO peer group or talk to a trusted advisor. A little insight early on can save you from major mistakes later.
5. Take Advantage of Free Resources
If you’re not sure where to start, visit EBITDAUniversity.com. There, you can join a free webinar that walks through the six secrets to selling your business, including how to understand valuation and avoid common deal killers. No sales pitch. Just helpful information.
Buyers do this for a living. They have processes, playbooks, and teams. As a founder, you’re selling a business you’ve spent years building. That makes you part-time prey. Don’t get picked off.
Stay informed. Stay protected. And be ready.
