A Diamond in the Rough
“How not to present your business to a Buyer.”
Seller #1 and #2 each have a 5-carat uncut diamond. Seller #1 had its diamond-cut by an expert artisan cutter with 25 years of experience. Seller #2 did their own diamond cutting. Diamond #1 sold for $95,000 and Diamond #2 sold for $55,000. Both sellers started with the same product but, Diamond #1, the one with the professional cut and appearance, sold for 80% more than Diamond #2. The classic mistake that many business owners make is trying to get a buyer to give them the Diamond #1 price when they are presenting their business as Diamond #2. Businesses, like diamonds, need to be carefully and artfully cut by experienced experts to get the highest value. Using your own hammer and chisel won’t get it done.