Unsolicited Offers: Protecting Your Business and Maximizing Value

Dec 20

Getting an unexpected offer to buy your business can feel exciting—but it can also be risky if you’re not prepared. Here’s how to protect your business, boost its value, and make smart decisions when someone offers to buy without you asking.

What is an Unsolicited Offer?

These offers often come from buyers like private equity firms, family offices, or competitors who see value in your business. While it’s a compliment to your success, jumping in without a plan can lead to undervaluation, loss of important information, or distractions that hurt your business.

5 Smart Moves for Handling Unsolicited Offers

Protect Your Information: Always have buyers sign an NDA (Non-Disclosure Agreement) to keep sensitive business details safe. For added protection, consider a non-circumvention agreement to prevent misuse of your information.
Share Details Strategically
Ask for an “Indication of Interest” (IOI) to confirm the buyer’s commitment before sharing financial or operational data. Only share more when you’re confident in their seriousness.
Polish Your Financials
Make sure your financial statements reflect your true business value. Adjust for one-time expenses and market-rate salaries to show accurate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Understand the Market
Check current market trends, like multiples and financing availability. Talk to a transaction advisor to decide whether selling now is the right move or if waiting could lead to a better deal.
Stay Focused on Your Business
Don’t let an offer distract you from running your business. Work with advisors to handle the process so you can keep operations strong and your valuation intact.

A Risk Worth Managing

Unsolicited offers can be a great opportunity, but they need careful handling to protect your interests. By staying prepared, professionalizing your financials, and getting expert advice, you can turn an unexpected offer into a successful sale.

Need help navigating the process? Check out Candor Advisors’ insights section today.