The Underrated Auction Strategy That Can Speed Up Your Deal

Welcome back to another edition of The Wise Exit newsletter.

This week, we're covering:

• A rarely discussed auction strategy that can speed up your deal

• 5 questions to help you decide if speed is actually worth the risk

• 3 actions you can take to pressure-test your exit strategy

Let’s dive in.

💡 This Week’s Big Idea

The Underrated Auction Strategy That Can Speed Up Your Deal

One strategy that often comes up in conversations about accelerating a sale is the Dutch auction, which is a process where the price starts high and steps down until a buyer accepts.

On paper, it sounds efficient. And in very specific cases, it can be.

But the nuance founders often miss is that speed introduces risk. Not just for buyers, but for sellers too.

With a Dutch auction, you’re betting that at least one buyer will step in before the price falls too far. If they don’t, you can end up in a weaker position than where you started.

Contrast that with a traditional ascending (English) auction, where buyers move up over time.

As the process unfolds, buyers spend more time, more money, and more emotional energy on the deal. They conduct diligence, loop in partners, and attach their name to the transaction.

That effort creates momentum and leverage.

It’s the sunk cost effect at work. The more invested a buyer becomes, the harder it is for them to walk away.

A Dutch auction skips that buildup entirely. Instead of gradually pulling buyers deeper into the process, it asks them to make a quick decision with less emotional and financial commitment.

It can work in very specific situations, but it’s not a universal solution.

The bottom line is that speed is a tool, not a strategy.

The most successful exits are about using the right process for the right business, at the right moment.

Reply to this email if you’re thinking about how aggressive (or patient) your exit strategy should be. I’m always happy to talk it through.

❓ 5 Key Questions to Ask Yourself This Week

1️⃣ If I optimized purely for speed, what leverage would I be giving up in my deal?

Fast processes can shorten timelines, but they can also reduce buyer commitment.

2️⃣ Do my buyers actually need urgency, or do they need time to get emotionally invested?

Different buyer types respond very differently to pressure.

3️⃣ Would a faster process limit my ability to create competition?

Without competition, price and terms rarely improve.

4️⃣ How confident am I that buyers would step in quickly without incremental diligence?

If buyers need time to get comfortable, speed may work against you.

5️⃣ Am I choosing speed because it’s strategic, or because I’m impatient or burned out?

The motivation behind the decision matters more than most founders realize.

 ✅ 3 Action Items for This Week

☑️ Map out your ideal sale process: Write down what speed would actually change in your deal — price, leverage, diligence depth, and buyer behavior.

☑️ Identify where buyer commitment really gets built: Is it during diligence? Management calls? Site visits? That’s where leverage is created, so protect it.

☑️ Talk through process options with an advisor before choosing one: Auction structure isn’t one-size-fits-all. The right advisor will help you choose the process that fits your business, not just what sounds appealing.

That’s all for this week.

Remember, the goal isn’t just to sell fast. It’s to sell well, on your terms.

Reply to this email or contact us here if you want help thinking through your exit strategy.

Talk next week,

Brian Dukes
Managing Partner at Exitwise