How do I compare two offers on my business?

Two offers with the same asking price on paper can be worth very different amounts to you once you look past the number. Comparing them properly means working through a short list of factors, not just picking the larger figure.

Look past the headline number

An offer that is entirely cash at closing is worth more, in practical terms, than the same headline price with a large earn-out or vendor take-back attached, since deferred and contingent payments carry real risk that they never fully materialize. Break each offer down into what is certain now and what depends on the future.

Check how certain the financing is

A buyer with cash in hand or a formal loan approval is a much safer counterparty than one who has only a general plan to arrange financing after signing. Ask directly about proof of funds or financing status for each offer before weighing anything else.

Count the conditions attached to each offer

An offer with fewer, narrower conditions, such as a standard financing condition with a firm deadline, is generally stronger than one loaded with broad conditions that give the buyer many ways to walk away later. More conditions usually means more ways the deal can still fail after you have taken the business off the market.

Compare the expected timeline to closing

A buyer who can move faster reduces the time your business sits off the market and the risk that staff, customers or competitors learn of the sale before it is final. A slower closing is not automatically disqualifying, but it is a real cost worth weighing against a higher price.

Weigh who is more likely to actually close

Industry experience, a credible transition plan, and how the buyer has handled the process so far all say something about whether they will actually get to closing, which matters as much as the number they put on paper.