One of our guiding philosophies is: “We don’t tell the market what your business is worth. We structure a process that makes buyers show us.”
Now, this might sound counterintuitive.
Many people reach out to an M&A advisor because they want to know how much their business is worth (ie, what’s the price).
This week’s newsletter focuses on why the competitive process we run works better than simply putting a price tag on your business.
And how running this process can lead to stronger offers, better terms, and (most importantly) an exit without regret.
3 insights from the front lines of competitive dealmaking
2 frameworks we use to drive buyer tension
1 action step to shift how you think about your sale
3 Insider Insights About Competitive Processes
1. Setting a price creates a ceiling, not a floor
A set price boxes you in and limits your negotiating power. It anchors buyer expectations and caps the upside (ie a buyer who might have paid more, may bring down their offer to match your asking price). A competitive process allows the market to dictate how much your business can sell for. It opens the door to a range of offers and allows interested parties to compete — which often leads to a better result.
2. Most buyers start with lowball offers
When buyers don’t receive pricing guidance, they’ll test the floor. This is to be expected. A structured, competitive process reveals who’s serious. It weeds out “low ballers” and invites top buyers to stretch beyond expectations.
3. Control shifts the moment you sign an LOI
Before a Letter of Intent (LOI), the seller holds the leverage. After it’s signed, the buyer controls the clock, the diligence, and the tone. A real competitive process ensures you lock in favorable terms before exclusivity begins. It allows you to vet buyers, drive competition, and set the framework for the deal beforehand.
2 Frameworks That Shape Our Competitive Process
Valuation ≠ Asking Price ≠ Offer
These three crucial parts of a sale aren’t the same. In a competitive process, we look at “value” in three different ways:
- Valuation: We conduct one internally to align with the client and set an expected range for your sale.
- Asking Price: We don’t set one. It limits deal creativity.
- Offer: We collect IOIs from multiple buyers to see how they value the business.
This distinction allows us to build urgency and discover buyers willing to pay more than expected.
The PowerExit Arc
This is the backbone of the Marsh Creek process:
- Preparation: Clean books, clear roles, reduced key-person risk
- Market Engagement: Release a high-quality CIM, no pricing guidance
- Buyer Competition: Set a deadline, collect IOIs, build tension
- Controlled Exit: Choose the best buyer, on the best terms
List Of Our Completed Transactions
1 Action Item This Week
Stop thinking in terms of sale price
Valuation isn’t a math problem with one answer. It’s a conversation with the market, and the more buyers at the table, the better that conversation goes.