Should I Sell My Business As Is?
When we’ve lived in a house for years and then consider selling, we have the decision to make, “Do I upgrade things like the kitchen, bathrooms, and roof, or “sell as is”? Perhaps the potential seller wants or needs to sell quickly due to declining health or some other extenuating circumstance. And, the thought of making all the remodeling happen in a short period of time is painful. It will take a lot of time and money, and so they wonder “Should I just sell as is?”
Our home seller wisely solicits expert advice from their realtor and decides, despite the realtor’s advice to the contrary, to put the house on the market as is. Leaving as quickly as possible is the driving motivation for the seller, much more than the added $$$ they’d receive if the improvements were first completed. What the seller did not expect to happen (again having disregarded the realtor’s warnings!) was that it took much longer to sell the home, and when it eventually sold the sale price was even less than expected. Without the recommended improvements in place, there simply weren’t as many options or interested buyers. So, the primary goal of the seller, to sell as fast as possible, wasn’t realized. The only goal achieved was they no longer owned the house. They had many regrets in the years ahead.
Too often this scenario works out in the same way for small business owners. In almost all cases, “fixing up” your business prior to listing it for sale is the preferable strategy. An attractive and exit-ready business will be more appealing to potential buyers, resulting in not just a higher sale price but also more options for exit and a faster sale. And, just like a home, but with much more complexity, it’s best to budget time and money for improvements over years rather than weeks or a few months. Get started today “fixing up” your business (and personal planning readiness) in order to exit on your own terms and conditions.