“You’re leaving money on the table.”
It’s something we often say to business owners.
Getting an offer for your business is exciting. That excitement makes it tempting to rush and move straight to the finish line.
But without a proper process to evaluate offers and create a competitive market, many owners end up with less favorable terms—and less value than they could have captured.
This week, we’ll break down how leverage works in an M&A deal and how to avoid leaving money on the table.
We’ll cover:
- 3 insights on how sellers gain (or lose) leverage
- 2 frameworks to maximize value
- 1 action step to start thinking differently about your exit
3 Insights About Leverage & Value
1. Don’t take the first deal
Many owners are approached directly by buyers in a proprietary deal. While flattering, it’s also one of the fastest ways to leave money on the table.
Without a competitive process, you don’t know your business’s true value. Real leverage comes when buyers know they’re not the only option.
2. You have the most leverage before an LOI
Before an LOI is signed, the seller controls the process. You decide who sees the deal, when offers are submitted, and how competition is structured.
Once an LOI is signed, leverage shifts. The buyer controls diligence, timelines, and often the tone of negotiations. That’s why skipping marketing and outreach, and going straight to a single buyer, usually weakens your position.
3. Plan in advance
Leverage is built over time. Owners who plan early address issues like owner dependency, customer concentration, tax structure, and legal readiness before buyers are involved.
Without preparation, sellers are vulnerable to retrades, tax inefficiencies, and structural problems that chip away at value.
2 Frameworks That Create Leverage
The Competitive Process Framework
Leverage comes from controlled competition. A structured process that reaches the right strategic and financial buyers creates urgency and forces buyers to put their best offer forward.
When buyers know they’re not the only game in town, terms improve, and risky structures become harder to justify. This is the foundation of a PowerExit: selling on your terms, not the buyer’s.
The “Begin With the End” Model
Run your business as if it will be sold someday—even if that day feels far away. This mindset influences everything: contracts, financials, and risk management.
When the time comes, leverage is already present because you’ve planned ahead.
List of Our Completed Transactions
1 Action Item This Week
Start planning decisions with an end in mind.
Even if you’re not selling anytime soon, ask yourself: “Would this decision help or hurt me in a sale?”
This simple shift in perspective can be the difference between capturing full value and leaving money on the table.