If your listing has been up for a while without serious inquiries, the natural first thought is: should I lower the price? The answer is often yes — but far from always, and a hasty price cut can do more harm than good.

Signs the price really is the problem

  • You get inquiries and initial interest, but buyers withdraw once they see the numbers
  • Comparable businesses in your industry and size are selling at a significantly lower EBITDA multiple
  • Your advisor has already warned you the price was on the high side

Signs the problem isn't the price

  • You're getting very few or no inquiries at all — even from unserious buyers
  • The sales materials are thin or outdated — see our guide to sales materials that work
  • There are real weaknesses in the business (e.g. high owner dependency, customer concentration) — see what typically pushes the sale price down

What does a price cut actually cost you?

Beyond the direct financial difference, a visible price cut often signals to the market that something's wrong — even if the reason is simply that the original price was set a bit too optimistically. Consider adjusting other elements first: sales materials, who you're targeting, and whether the listing is actually reaching the right buyers.

Alternatives to lowering the price

Consider a structural change instead — e.g. an earn-out, where part of the price is only paid once certain targets are met. It can make the deal attractive to a hesitant buyer without you having to accept a lower fixed price.

How long should you give the process before reacting?

See our general overview of how long a sale typically takes. If you're significantly beyond what's normal for your industry and size, that's a sign something should be adjusted — not necessarily the price.

Frequently asked questions

How much should I lower the price, if I choose to?

There's no fixed answer. An advisor with insight into comparable deals can give you a realistic estimate that matches the market — rather than a guess.

Should I clearly announce the new price, or adjust it discreetly?

It depends on how long the listing has been visible at the old price. Too obvious or frequent a price change can itself create distrust.

Can I take the listing down and relist instead of lowering the price?

It can work, but rarely solves the underlying problem alone — combine it with a real improvement of the sales materials or an adjustment of who you're targeting.

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