Why We Don’t Do Bidding Wars
In theory, selling your business to the highest bidder sounds great.
You get all these buyers competing for your asset, the price rises and rises, and ultimately, at the end of the bid, you walk away with the most amount of cash you possibly could’ve gotten.
Alas, so much of what is great in theory doesn’t really pan out well when it comes into reality.
Bidding wars are an example of that.
The truth is, bidding on a business makes the entire process less smooth. It creates more bumps in the road, and you may be obligated to sell your business at a far less attractive amount than if you had just gone with a straight pricing method like we do.
We’re very familiar with how bidding works. In fact, when we first started brokering sites, this is exactly how we would get so many eyeballs on our listings. In the end though, it was almost never worth it. This is especially true as the businesses on our marketplace started growing in price.
One of the messy things that can happen in bidding is getting buyers that are “testing” the waters. They slowly outbid, driving the price up, then when it is revealed they are the winner, they back out.
Either they never had the money to begin with, or they get cold feet, not having expected to win that bid. The buyers end up backing out, and the second highest bidder may or may not buy the business. In fact, that second highest bidder might go even lower knowing that no one would bid as high a he did.
These kinds of complications are exactly why we don’t do bidding wars.
If you want to sell your business for the maximum amount, with the shortest time frame, and in the most secure way possible, stick with our way.
After selling hundreds of online businesses, we’ve been through or have experience with nearly every method out there.
And our method that we use across our marketplace is going to get the job done in the best way possible for you.