How Can a Business With Millions in Revenue Struggle to Sell?
I just spent months trying to sell one.
Over 50 years in business.
Millions in annual revenue.
35 employees.
A large real estate footprint.
Significant inventory and equipment.
A recognized name in its market.
And very little cash flow.
My company contacted thousands of potential buyers. Strategic buyers. Competitors. Individual buyers. Investment groups.
People looked. Some really liked the business.
Three experienced industry buyers drove hours, spent time with the owner, toured the facility and told us it was a good business and a good opportunity.
They didn’t buy it.
That experience reinforced something every business owner needs to understand. Revenue is not value.
Assets are not automatically value either. A buyer can look at $1 million of inventory and equipment and still ask:
“After I pay for this business, employees, rent or a mortgage, debt and working capital, how much money is left for me?”
We explain adjusted earnings. We considered seller financing. We looked at strategic buyers who could eliminate duplicate expenses. We considered whether pieces of the company might be worth more than the whole.
None of that changed the basic problem. Wanting a deal doesn’t create a deal.
Here is the lesson I would give to any owner:
Do not start preparing to sell when you are tired and ready to leave. Start years earlier.
Build profit.
Clean up expenses.
Reduce dependence on yourself.
Develop managers.
Create recurring revenue.
Control inventory.
Document your processes.
Make every dollar of revenue produce more cash.
And know what your business is actually worth before your retirement depends on that number.
A business can employ people, serve customers, generate millions in sales and be a huge part of your life.
The buyer still has to make the math work.
Build the business you want to sell before you need to sell it.
Are You Really Ready to Know Your Business Value?
If you’re wondering what your business might be worth—or what you could do today to make it more valuable when you’re ready to sell—let’s talk.