Skyrocketing Your $10–$50M Sale With Porter’s Five Forces

For Canadian business owners of privately owned companies with $10 to $50 million in annual revenue, selling your lower-middle market business is a high-stakes opportunity. Often, an unsolicited approach from a stakeholder—such as a rival, supplier, customer, or management team member—triggers the sale process. By integrating Porter’s Five Forces analysis, a skilled M&A advisor can leverage competitive dynamics to create an auction that maximizes value. Advisors typically add 1.25x EBITDA to the enterprise value, more than offsetting their fees for businesses with $1M to $5M in EBITDA. While you might be tempted to negotiate directly with multiple parties to avoid fees, this risks negative perceptions and undermines your most significant asset. This article explores how Porter’s Five Forces, stakeholder risks, and an advisor’s expertise drive the best outcome.