If a seller approaches 100 potential buyers, approximately how many reasonable acquisition offers could be expected?

In the context of mergers and acquisitions, it is common for a seller to approach a significant number of potential buyers during the process of seeking acquisition offers. The expectation is that only a fraction of those approached will actually express serious interest and follow through with viable acquisition proposals.

When a seller approaches around 100 potential buyers, a generally accepted expectation is that about 3% to 5% of those will translate into reasonable acquisition offers. This statistical norm stems from the realities of business negotiations, where many buyers may ultimately not be interested due to various factors such as strategic fit, valuation disagreements, or internal priorities.

Choosing three as the expected number of reasonable acquisition offers reflects a conservative and realistic outlook, considering the steps and hurdles involved in the acquisition process. This number allows for a healthy balance, taking into account potential engagements that may arise from promising leads without overestimating the level of interest from all 100 approached buyers.