Beyond price: What matters most when selling your company
Most of our seller clients go into a sale thinking their highest priority is getting top dollar. And sure, price matters—it’s your financial reward for years of hard work. But many clients learn along the way, that other factors often carry just as much weight—sometimes more. If you want a successful and satisfying sale, look beyond the headline sale price.
Strategic Fit: Will the Buyer Honor Your Legacy?
The right buyer isn’t just the one offering the most money—it’s the one who sees value in what you’ve built. Many owners care deeply about their company’s culture, employees, and future direction. A buyer who shares your vision and wants to grow what you started may be worth more than a higher offer from someone looking to wring maximum profit out of your business.
Deal Structure: Terms Matter More Than Price
A higher price isn’t always the best deal. The structure—earn-outs, seller financing, holdbacks, rep and warranty insurance—can make a big difference. A slightly lower offer with favorable terms can often put more money in your pocket in the long run than a big number with strings attached.
Taxes: It’s Not What You Make, It’s What You Keep
How a deal is structured—stock sale vs. asset sale, purchase price allocation, installment payments vs. lump sum—can dramatically impact your tax bill. A “higher” price can shrink fast after taxes if the deal isn’t structured wisely. Smart sellers work with advisors to maximize after-tax proceeds, not just the headline number.
Legacy and Employees: What Happens After You Leave?
Many owners care deeply about their employees and the legacy they’re leaving behind. If keeping your team or family employed, maintaining company values, or ensuring community involvement matters to you, it may be better to select a buyer who aligns with that vision. It’s not just about money—it’s also about what happens when you’re gone.
Your Role Post-Sale: Are You In or Out?
Do you want a clean break, or are you open to staying involved? Some buyers need sellers to stick around for a transition—or retain partial ownership. Others can offer a full and quick exit. Know what you want and make sure the deal matches your expectations.
Speed and Certainty: A Fast Close Can Be Worth More
A higher offer isn’t worth much if it drags out for months or falls apart at the last minute. Buyers with secure financing and a smooth path to closing can be more attractive than those offering more money but bringing uncertainty. Time kills deals—certainty has value.
The Bottom Line
Yes, price matters, and we’re all about helping our seller clients maximize value. But a successful and satisfying sale is about more than that. Strategic and cultural fit, deal terms, taxes, legacy, and closing certainty all play a role in selecting a buyer and optimizing sale outcomes. Sellers learn that the best deal isn’t always the highest price—it’s the one that checks the most boxes for achieving their financial and personal goals.
For further information on this topic or to discuss a potential M&A advisory or exit planning need, please contact Al Statz.
