Sell or Shut Down or A bird in the hand…

If there is ever an opportunity to sell a business, the business owner should take a serious look at the options. Every year we will have one or two business owners that refuse to accept a reasonable offer (based on their current situation), and within a few months the owner will just close the doors.

There was a clear advantage to taking tens (or hundreds) of thousands of dollars in a sale.  The owner could have paid off existing debt, had a buyer  take over the lease, kept the business alive, kept people employed, and had a little left in his/her pocket.

Instead, the business shut down with all debt still in place, employees were laid off,  and  the owner has zero money in his/her pocket. Maybe it was pride that got in the way of taking an offer, maybe the owner felt they were being taken advantage of, but whatever the case he/she refused to consider the risks and potential result.

When buyers put offers on the table, it is a serious move and should be analyzed completely. If the business is in a distressed position, it leaves little time for multiple buyers to review the business, assess the risk and hopefully submit offers.

After an offer is accepted, it could still take 30 to 60 days to complete a deal. If you are considering a sale, involve your advisors and have an open and honest discussion about all the options. We usually have a good sense of the buyer market and the attractiveness of any given business.  Contact an Apex Business Advisor if you would like to learn more about buying or selling a business.

Doug Hubler
President