Competitive tension
The state in which several qualified buyers are pursuing the business at the same time. The source of pricing power in a process.
In a sale
What it changes in a sale
Competitive tension is what turns interest into price. A single interested buyer is a negotiation, and that buyer knows it; several qualified buyers on the same timeline are a market. It is created deliberately, through the buyers invited and the dates set for offers, and it ends the moment exclusivity is granted.
Where it comes up
Read it in context
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The Go-To-Market Analysis (GTMA) builds the file a buyer would build on your business, before a buyer does.