Tip #36: Pricing a business too high can be a risky strategy!

business pricing analysisOftentimes, sellers want to go to market with a very high price, hoping buyers will see what the seller perceives is a great value. Sellers figure that buyers will at least check it out. Unfortunately, there are many qualified buyers who won’t even look at a company if they think the price is out of line with economic realities. Even sophisticated buyers who are used to negotiating business transactions will walk away without looking. Should a business be listed at a higher price anticipating a lower offer? Usually the answer is yes. But if the price is too high, there may be very few looks and possibly no offers.