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How much does negotiating move the price?

51% of deals closed above the first offer. After a counter-offer, the median gain was 17%.

51% of deals closed above the first offer

Sample of 140 deals with a first offer on recorddeals by the change from the first offer’s valuation

We compared the valuation of each deal with the first offer the founder received, in 140 deals where both are known. In 51% the deal closed more than 1% above the first offer. In 11% it closed below it. The median change was 9% (the median is the middle value: half the deals are above it, half below).

In the 106 deals that closed after a counter-offer, the median valuation was 17% above the first offer. In the 34 deals where the founder accepted an offer as it stood, the median change was 0%.

This is a correlation, not proof. Founders counter when the first offer leaves room, and pitches where a counter ended the talks are not in these deals. Still, the first offer was often not the last one.

What was said

Mohamed Farouk

Revised offer

I'll give you another offer of 15 million EGP: we come in at 40%, dropping to 35% upon achieving certain KPIs.

AgriCash (اجري كاش) · S2 E8 · 25:29 · Paraphrased

Mohamed Farouk

Revised offer

We can make it 30% for 3 million EGP, but anything less than 30% wouldn't be interesting for the two of us.

Plume (Plume) · S5 E17 · 24:10 · Paraphrased