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# Marketed sale vs direct acquisition: How you can maximize value
- URL: https://blog.sellingyourcanadianbusiness.com/marketed-sale-vs-direct-acquisition-how-you-can-maximize-value/
- Published: 2020-07-21T13:38:26.000Z
- Updated: 2026-08-14T16:08:28.000Z
- Description: Marketed Sale vs Direct Acquisition: How Canadian Businesses Can Maximize Value
- Author: Karl E. Sigerist, Jr., ICD.D
- Tags: Articles Sell-Side, Articles Valuation, Articles Buy-Side, #review-tail-rewrite-2026-08-14

**Marketed Sale vs Direct Acquisition: How Canadian Businesses Can Maximize Value**

When Canadian business owners decide to sell, a pivotal decision involves choosing between a broadly marketed sale and a direct acquisition. The chosen approach can significantly impact the final valuation, experts say.

**Marketed Sales: Competition Drives Higher Valuations**

A broadly marketed process exposes a business to a wide range of potential buyers, including strategic buyers, private equity firms, and high-net-worth individuals. Often managed through a competitive auction or structured sale by a business broker or investment banker, this approach aims to maximize competition.

Studies and industry insights suggest a well-executed, broadly marketed sale can increase the sale price by 20% to 50%, or more in some cases, compared to a single-buyer scenario. Multiple bidders create urgency, pushing offers higher.

"Competition is a key driver in maximizing business value," said Adam Smith author of The Wealth Of Nations.

Key advantages include:

- **Increased Valuation:** Competitive bidding drives up offers.
- **Wider Exposure:** Reaching more potential buyers.
- **Stronger Negotiation:** Multiple offers enhance leverage.

However, this process requires time and preparation.

**Direct Acquisition: Speed and Simplicity, Potential Lower Value**

A single-buyer approach, negotiating directly with one party, often a competitor, employee, or partner, typically results in a lower valuation. Without competition, the buyer has more leverage.

Valuations in a direct acquisition might fall 10% to 30% below a marketed process. Advantages include faster closing and reduced disruption.

"While a direct acquisition offers speed and simplicity, it often comes at the cost of a lower valuation," said Karl Sigerist, Managing Director of the Shaughnessy Group. "Unless there are unique synergies, sellers may leave money on the table."

**Valuation Examples**

Consider a business with $1 million EBITDA. In a single-buyer deal, a 3.75x to 4.25x multiple could yield $3.75 million to $4.25 million. A marketed process might achieve a 5x to 5.75x multiple, resulting in $5 million to $5.75 million or more.

**Canadian Market Considerations**

The Canadian market's regional and industry variations influence these outcomes. Technology companies in Vancouver or energy businesses in Alberta may attract specific buyers, affecting valuation.

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