If you want to achieve the best price, the most favourable terms, and a smooth sale process, attracting multiple buyers to your business is essential. Nothing motivates buyers, and drives value, like the presence of credible competition. In M&A circles, this is called competitive tension, and it’s one of the most powerful levers for maximising your exit.

Too often, business owners quietly approach a single buyer or respond passively to an inbound enquiry. While this may seem less stressful, it usually results in lower offers, weaker negotiating positions, and less control over the process. Creating real competition changes everything.

Here’s how to build and manage competitive tension, based on strategies from The Exit Roadmap by Chris Spratling, to secure the outcome your hard work deserves.

1. Prepare Your Business to Attract a Wide Pool of Buyers

Buyers are attracted to well-prepared, sale-ready businesses. Before going to market, make sure:

– Your financials are clean, credible, and up to date

– Key processes are documented and repeatable

– Customer and supplier contracts are in place and assignable

– Leadership and staff succession plans are ready

A business that’s easy to understand, easy to transfer, and has clear future potential will naturally attract more interest.

2. Identify and Target Multiple Buyer Types

Don’t just wait for an acquirer to come to you – be proactive in identifying different classes of buyers, such as:

– Strategic buyers (industry competitors, suppliers, or customers)

– Private equity or financial investors

– Management teams (for MBOs)

– Employee Ownership Trusts

– International acquirers

Each group brings different motivations and could value your business in unique ways.

3. Develop a Strong Information Pack and Teaser

Create a high-quality, confidential information memorandum (CIM) or “teaser” that highlights the unique value, growth opportunities, and financial performance of your business. This marketing document is crucial for:

– Generating initial interest

– Pre-qualifying serious buyers

– Ensuring a level playing field when multiple parties start their evaluation

4. Use Advisors to Run a Formal Process

Experienced corporate finance advisors or M&A brokers can help you:

– Reach a broader network of potential buyers

– Manage the flow of information and communication

– Run a structured bidding process with deadlines, creating urgency

– Handle sensitive negotiations and keep buyers engaged

A managed process increases your credibility and ensures no serious buyer is left out.

5. Maintain Control and Discretion

It’s critical to keep the process discreet and avoid premature disclosure to staff, suppliers, or the wider market. Use non-disclosure agreements (NDAs) and communicate only on a need-to-know basis.

6. Be Ready to Move Fast and Decisively

Competitive tension works best when buyers know there are others at the table. Move quickly, respond promptly, and keep the process moving forward. Delays or indecision can erode interest and weaken your position.

7. Use Tension to Maximise Value But Stay Professional

Don’t bluff or invent interest that isn’t real as savvy buyers will spot this. Instead, let genuine competition play out, and use it to negotiate:

– Higher price

– Better terms (e.g., fewer warranties, more cash up front)

– More favourable post-sale arrangements

Always remain professional, ethical, and transparent. The aim is to drive the best outcome, not burn bridges.

Final Thoughts: Competition Is the Seller’s Best Friend

Creating and managing competitive tension is both an art and a science, but it’s well worth the effort. A wider pool of engaged, credible buyers means stronger offers, a faster process, and more options for you.

Your Exit Starts Here

If you’re wondering whether you’re truly ready to sell, don’t leave it to chance. Take the Exit Readiness Survey today at www.chalkhillblue.org/exitreadiness-survey and get a clear picture of where you stand, and what to do next.

Looking for the complete roadmap to a successful exit? Order The Exit Roadmap by Chris Spratling on Amazon – a practical, step-by-step guide for ambitious entrepreneurs ready to maximise value, minimise stress, and exit on their own terms.

For more insights and real-world advice, follow Chris Spratling on LinkedIn. Start your journey to a successful exit with clarity and confidence.