How to Avoid a Proprietary Deal

When a business owner receives unsolicited interest from a buyer, whether the big name in the industry or a unique financial buyer, his first instinct is often to pursue it right away; it seems natural to follow that path. The danger is that you give up negotiating control, the powerful benefit of competition, and at that point, deals tend to derail.

John Warrillow, author of Built to Sell, explains why this is and how to avoid it: