Exclusivity
A period during which the seller agrees not to negotiate with other buyers, usually granted on signing an LOI.
In a sale
What it changes in a sale
Exclusivity is the point where negotiating leverage turns. Before it, several buyers compete; after it, one buyer has the diligence period, the purchase agreement, and time on its side. Every term that matters is best settled before exclusivity is signed, and the period itself is a term worth negotiating.
Where it comes up
Read it in context
In the articles
- Same business, two outcomesTwo identical businesses, one prepared and one not, sell for very different prices.
- What an LOI is really sayingThe headline is one term of nine. Here are the other eight.
- The second biteIn the right recap, the second sale is larger than the first. In the wrong one, it is zero.
- When a buyer calls firstAn inbound offer is information, not a decision.
- Diligence yourself firstEvery business has issues. The question is who finds them.
- Strategic, platform, add-on, sponsor: who buys whatDifferent buyers pay for different things. The process should include several.
- Structure is priceTwo offers with the same headline can differ by millions in what you keep.
See the terms with your own numbers
The Go-To-Market Analysis (GTMA) builds the file a buyer would build on your business, before a buyer does.