When it’s time to sell your business, the holy grail is often a price above market value.
It sounds great but is it realistic?
The answer? Yes. But only under the right conditions and only if you’re strategic.
What Does “Above Market” Actually Mean? Let’s define the meaning.
Market value is a price that an informed buyer would be willing to pay under typical circumstances. It’s based on factors like your profits, risk profile, industry trends, and comparable sales.
Above market value means you’ve attracted an offer that exceeds this benchmark. It’s a premium price that reflects extraordinary value in the eyes of the buyer.
But here’s the key: that value isn’t always obvious on a spreadsheet.
The 4 Levers That Drive Above-Market Sales
Getting more than market value isn’t luck. It’s usually the result of one or more of the following:
1. Strategic Value to a Specific Buyer
This is the most powerful lever.
If your business fills a strategic gap for a buyer, whether that’s your location, systems, contracts, intellectual property, or customer base, they may be willing to pay a premium to avoid starting from scratch.
Think:
- A national company wanting to expand into your region
- A competitor eager to snap up your client list
- A supplier looking to move downstream in the value chain
When your business solves a specific problem or enables growth, price becomes less of a constraint.
2. Scarcity in the Market
If businesses like yours rarely hit the market, buyers know they might not get another shot. That scarcity creates urgency and urgency fuels higher offers.
This is especially true in niche industries, regions with limited supply, or high-barrier-to-entry sectors like construction, trade services, or specialist manufacturing.
3. Strong, Low-Risk Performance
Premium buyers don’t want projects. They want performance, especially if it’s stable and repeatable.
If your revenue is growing year over year, your margins are healthy, and there’s strong visibility of future earnings (e.g. recurring contracts, retainers, or long-term clients), that’s a value magnet.
Bonus points if the business doesn’t rely heavily on you personally. If it runs smoothly without you, buyers see opportunity, not dependency.
4. Competitive Tension
Nothing will boost a sales price like having multiple serious buyers in the room.
When more than one buyer is interested in your business, negotiations become dynamic and the final offer can sometimes creep above market value. But competitive tension doesn’t happen by accident. It requires smart marketing, the right positioning, and access to a network of qualified buyers.
So What’s the chances?
Statistically speaking, above-market sales are the exception, not the norm. But they’re absolutely possible, especially when the sale is managed by professionals who know how to identify leverage points and attract strategic buyers.
The biggest mistake owners make? Assuming the business is “worth more” just because of how hard they’ve worked. But buyers don’t pay for effort; they pay for opportunity.
Want to Know What’s Possible for Your Business?
We’ll give it to you straight, no wishful thinking. Just a grounded assessment of where your value sits, what’s working in your favour, and what might be holding you back.
Book a confidential, no-pressure chat with our team
Or call us directly on 1800 825 831