Is the Price of a Business Negotiable?

The selling price of a business is absolutely negotiable. Sellers expect potential buyers to make offers that are sometimes significantly less than their asking price. But be reasonable: If your offer is half the asking price, for example, the seller probably won't take you seriously. Sellers expect to negotiate, but unrealistic offers waste everyone's time.

Although there is no precise method for valuing a company, owners who have used an accepted valuation formula to arrive at their asking price will be less likely to stray far from their original figure. Such owners will usually want to remain within 20 percent of their original asking price.

The final price ultimately depends on how quickly the seller wants to sell and how badly you want to purchase the business. The greater the incentive the owner has to sell, the farther below the asking price he or she is likely to go. However, the more you want to buy the business, the more quickly you´ll want to complete the deal. In that case, expect to pay a higher price.