Price below market and undersell capabilities when selling to create competitive bidding
When listing a business for sale, intentionally price slightly below market value and deliberately undersell the product's capabilities in the listing. This strategy attracts more buyers, creates competitive tension, and often results in offers significantly above the asking price as buyers discover the actual value during due diligence.
When to use
When preparing to sell a profitable business and you want to create urgency and competition among buyers rather than waiting for the perfect buyer at the perfect price
Don't do this
Overpricing and overselling the business, which leads to fewer interested buyers, longer time to sale, and buyers who feel disappointed during due diligence
1 Founder Who Did This
Listed Nomad Cloud on Acquire.com slightly below market value and deliberately undersold its capabilities in the listing description