An unsolicited offer is an offer or proposal you get as an entrepreneur or business owner when another company or business wants to buy your company without you seeking a buyer. According to a survey, one of every three businesses gets approached with an unsolicited offer every year.
Generally, it is not unusual for some startup founders to dream of the day they receive an unsolicited offer to buy their company. While this can be exciting, knowing how to respond appropriately when the time comes is also imperative.
Accordingly, this article will provide a guide on how to respond to unsolicited offers to buy your company.
How to Respond to Unsolicited Offer to Buy Your Company
- Hold off on responding immediately because your first response might not always be the appropriate approach. You want to ensure you have the time to decide if it is best for you and your company. You should take a step back and collect your thoughts about the process to be sure that you are on track and to avoid regrets afterward. Also, make sure you do not get caught up in the moment.
- Secondly, you should evaluate the offer. Make sure it is beneficial to you, your team, and your company as a whole. Consider how the new owners will maintain the company’s values and how they will use the company’s resources.
- Consider the opportunity cost of declining the offer. Many times, entrepreneurs think that the offer may never come around again. However, that is not always the case. Hence, it is vital to understand how much it will cost you to walk away.
- Take the time to negotiate. Companies know entrepreneurs are often quick to accept the offer, but you must ensure it is right for you.
- Finally, it is important to be prepared to walk away. You never want to be in a situation where you feel you have to accept the offer.
Important Questions to Ask Yourself
- You need to ask yourself, “Do I want to sell my business?”. If Yes, then go for it, but if No, then you should decline the offer.
- Another question to ask yourself in such a situation should be, “What does my life look like afterward?”. Would there be any benefits if you sell your business, or will it come with some consequences?
- Who will run the business after I sell it? This is a great question to ask yourself when you get approached with unsolicited offers to buy your business.
Conclusion
As a business owner, it is important to remember that you are in control when responding to an unsolicited offer to buy your company. Take the time to make sure it is the right decision for you and your team. A well-thought-out response will ensure that you are making the best decision for you and your business. Finally, be prepared to stick with your decision, whether it is to accept or reject the offer.