• Tanya S Osensky

Buying a Business Tip: Initial Offer

Here’s an easy tip for anyone buying a car, a house or even a company.


When you make an initial offer, don’t bid a round number like ten thousand or one million. Rather, bid with a more precise number like 9,850 or 1.03 million.


According to research of mergers and acquisitions, investors who offered precise bids generated returns that were 2-3 percentage points higher than those who offered round-numbered bids.


Sellers also were more likely to accept a precise bid without as much negotiation because they assumed, true or not, that someone must have crunched lots of data to come up with an amount so specific.


This is backed up by many other studies in social psychology as well.

Recent Posts

See All

In a business purchase, the closing day is not the end of the deal – it’s a beginning of a new venture. The transition is a period when the seller assists the buyer in the transition of the business –

It’s not an easy thing to buy a business. Even when the mergers and acquisitions market is a buyer’s market, buyers often make mistakes. Here are some of the most common ones. 1. Rushing When I was w

The mergers and acquisitions (or just M&A) world is seeing a lot of activity right now. Global M&A volumes hit a new record in 2021, overtaking last year’s record. But whether a particular company sel