By Michael Shea, Transworld Business Advisors of Tampa Bay
As a business broker, I understand why sellers care deeply about one number: the asking price. After all, it’s the number that funds retirement, pays for the next venture, or allows the owner to finally step into the next chapter of life. But here’s the truth: pricing your business based solely on what you want won’t get it sold.
At Transworld, I don’t just list businesses—I sell them. And that starts with pricing it correctly for the market, not for the seller’s dreams.
Why Your Number Needs to Work for the Buyer—Not Just You
When I value a business, it’s not guesswork—it’s math, market, and logic. Buyers, especially those relying on SBA loans, must meet specific criteria:
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The business must be able to pay its bills.
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It must generate enough cash flow to service the loan.
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And it must leave enough profit after debt service to pay the new owner a reasonable salary.
If it can’t do all three, the lender will pass. End of story.
“What About All-Cash Buyers and PE Firms?”
Yes, private equity groups and experienced investors may not rely on SBA loans—but they still apply the same filters.
They want a return on investment, typically within 3 to 5 years, and if the numbers don’t pencil out, they won’t write the check. These aren’t emotional buyers—they’re financially disciplined, and they’ll walk away from overpriced deals.
What Happens When You Price Too High?
If a seller insists on overpricing their business just to hit a personal number, here’s what usually happens:
🔹 I Won’t Take the Listing
I’m not in the business of creating “For Sale” flyers. I’m in the business of closing deals. If your number is unrealistic, I’ll tell you—because wasting everyone’s time helps no one.
🔹 Serious Buyers Walk Away
Buyers who do the homework—dig into your financials, hire CPAs and attorneys—won’t tolerate mismatched expectations. They’ll walk after wasting weeks or months, leaving you and your deal frustrated.
🔹 Lowball Offers Start Rolling In
Once your business lingers on the market or gets price drops, buyers assume something’s wrong. You’ve lost credibility—and likely lost the momentum to sell at all.
🔹 You Attract the Wrong Buyers
Maybe someone inexperienced doesn’t realize the price is inflated. They overextend, struggle to run the business, default on seller financing, or worse—tank the business entirely. You might end up taking it back.
Price to Sell, Not to Sit
It’s understandable to want to get the most from your business—but the market sets the price, not emotions.
The smartest sellers are the ones who treat pricing like strategy, not ego. They work with a broker to understand fair market value, know what buyers are willing to pay, and position the business to attract multiple offers—the kind that get deals done quickly and profitably.
Thinking of Selling?
If you’re serious about selling, get equally serious about your pricing. Let’s start with a complimentary, confidential opinion of value. I’ll give you honest feedback—based on deals closed, not promises made.
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Michael Shea
Transworld Business Advisors of Tampa Bay
Tampa’s Trusted Name in Business Sales
www.yourfloridabusinessbroker.com
Your number matters. Let’s make sure it’s the right one.
Michael Shea represents the Central Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 450 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential.