Navigating Asking Price

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October 28, 2025

by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School in Austin, TX, USA

How do you navigate the asking price for businesses listed with a purchase price? Do you exceed the asking price to stand out or just hit the number and try to win with your deal structure? I've been seeing more listings with asking prices lately. EDIT: We are assuming that your valuation lands right around the asking price. You shouldn't overpay just to meet the asking price. How do you stand out if everyone is submitting offers around the same(asking) price.
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commentor profile
Reply by a searcher
from Massachusetts Institute of Technology in Dallas, TX, USA
As a Searcher, you #1 priority is not to win the "Asking price bidding war" but your #1 priority is to buy a good business at a fair market value that you can successfully operate. With that in mind, I recommend you do your own valuation of what a business is worth and can be realistically funded before you make an offer. I know a lot of brokers play the bidding wars game to push the price high but that should not be your focus to win. I have had at least 4 instances in the few months where an oppty I lost because I wasn't the highest bidder, came back to me because the highest bidder couldn't close and wanted to re-trade the deal post LOI. Long story short, only offer what is fair and you can realistically close. If price too high, move on and keep looking.
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Reply by a professional
from The University of Texas at Austin in Austin, TX, USA
Underwrite after you get your information, and that will give you *your* price. You can then make an offer, if they're close. Or you can make an offer above what you would "pay" by building in terms that shift some risk/cash.
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