Five numbers buyers should not hear from you
Certain numbers reveal your negotiating limits before negotiations begin.
A buyer will often ask informal questions that sound harmless. Some answers can become anchors for the entire transaction.
First, do not volunteer your minimum acceptable price. That number is a negotiating limit, not a valuation.
Second, do not disclose the personal proceeds you "need" to retire or feel secure. A buyer may work backward from that figure instead of paying the company's market value.
Third, do not reveal the exact value of another buyer's proposal. Competing bids can be used strategically, but disclosing the precise number may allow a bidder to win by a small increment rather than submit its best offer.
Fourth, do not disclose how many buyers remain or identify them casually. The composition of the field is part of the seller's leverage and must also be protected for confidentiality.
Fifth, do not state a date by which you must close. A personal deadline can weaken your position on diligence, exclusivity, price adjustments, and post-closing obligations.
This does not mean refusing to answer reasonable questions or misleading buyers. It means distinguishing company information from negotiating information. Share accurate operating data through a controlled process. Let your adviser manage questions about value, competition, and timing.
The buyer is entitled to understand the business. It is not entitled to your reservation price, personal financial plan, or negotiating constraints.