How do you bring sellers back to reality on valuation?

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November 07, 2025

by a searcher from Northwestern University - Kellogg School of Management in San Francisco, CA, USA

I’m running into smaller deals (sub-$500k EBITDA) where the seller and broker seem anchored to a valuation that’s materially above where the market typically trades. These deals often sit for months because buyers can’t get comfortable at the asking price. For those with experience in this size range, what are some effective and respectful ways to help sellers and brokers understand realistic valuation ranges and steer them toward a more market-aligned expectation? I’m not trying to negotiate aggressively, just looking for professional ways to educate them so the conversation can move forward constructively.
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commentor profile
Reply by a professional
in Dallas, TX, USA
Don't try to educate sellers. You are a potential buyer and you either make an offer or walk away. If you want to negotiate with the seller you certainly can do that but don't try to educate seller.
commentor profile
Reply by a searcher
from University of California, Berkeley in Sunnyvale, CA, USA
Give them the reference number, and keep it at high level. If it doesn't work, tell them you can only move forward with $xxx amount, and contact you if they change their mind. Then continue with your pipeline. You might hear back after a few months.
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