AmiSight 9/17: Think Twice Before Selling Your Business From a Crater
Two business owners recently considered selling. Both were exhausted. One took an offer after years of struggle. I understand why. When you have carried a business for a long time, relief can feel as valuable as the money itself.
The other owner runs a 30 year old manufacturing company. Revenue is down. He is tired. Selling started to feel like the easy way out. My advice was to wait. A good business going through a bad stretch is not the same as a bad business. Cut expenses to match current revenue. Use the line of credit if the business can support it. The goal is not to save the business at all costs. The goal is breathing room to see clearly what is actually happening.
Exhaustion changes the math. The value of being done keeps rising the longer you fight. But buyers price your business on what it is doing right now, not what it used to do. Sell from exhaustion and you negotiate from weakness. Stabilize first. Then decide if you want out or if you were just trying to end a crisis.
Read the full piece for the complete story behind both owners.
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