Making offers in the current market environment?

September 29, 2025

by a searcher from Columbia University - Columbia Business School in Yardley, PA, USA

I've seen several posts on the subject of heightened asking prices (targets that should be priced 3x-4x SDE have asking prices of 4.5x-6x SDE). Curious if folks are putting in offers based on their own valuations (i.e. I've done the math, I expect revenue/SDE to stay flat/decline near term, 3.25x makes sense to me vs the 4.75x in the CIM), or just walking away. I'm trying to understand if a significantly lower offer (e.g. 2.75M vs asking 3.5M based on my valuation) may get me "blacklisted" with brokers as someone who "is not serious". Every business seems to have "multiple offers", and I'm wondering if I may be missing out by not putting in a bid.

Reply by a searcher
from University of Southern California in Long Beach, CA, USA

In the past, I have talked to the broker and gone through the numbers to explain a low offer. Many times the broker will agree that the sellers expectations are too high. In these instances, through my discussions, the broker realizes that I am a serious buyer, just not willing to overpay.

Reply by an intermediary
from Rockhurst College in Overland Park, KS, USA

Agreed. Gotta feel it out, can always say if buyer decides to entertain lower offers, let me know. Usually when I run the cash flow #s & sellers see that at X multiple there is very little left, they get the pic. Many brokers don't do that, but you could. Here's your CF seller, here's my potential loan at X price & here's what I would make at 3x vs 6x. 7x is roughly zero CF if 90% loan.

+11 more replies.

Join the discussion