Present A Business For Sale "Warts and all".

Why do I say that?

I realised recently that I use the expression "Warts and all" quite a lot when I'm talking to business owners about presenting a business for sale. I'll explain why in a moment but first let me tell you where the expression came from.

It turns out that in 1653 when Oliver Cromwell became Lord Protector of the Commonwealth of England (England was a republic from 1649 to 1660), a painter called Samuel Cooper was commissioned to paint Cromwell's portrait. Allegedly, Cromwell told him he wanted it painted warts, pimples and everything, to include any defects and imperfections. Hence, "Warts and all" became an expression to mean showing defects and imperfections. Interesting, don't you think?

Business due diligence upfront

When I work with business owners to produce a 'business ready for sale assessment', I tell them that my report will be "warts and all". In other words, it will tell them the "defects and imperfections" as well as the good stuff. Then we can work out how to remove or reduce the 'not so good stuff'. Another reason is that this is like doing 'due diligence' before going for a sale. Better that WE find the issues upfront and not the buyer in due diligence.

On the flip side of this I sometimes find some gems in the business that the owner isn't aware of. There could be a Rembrandt In the attic. Imagine you sell your house but don't empty the attic. The new owner moves in and finds a Rembrandt tucked away in a corner of the attic. (Read the P.S. at the end of the article. Someone just did find a Rembrandt in an attic).

Why a business ready for sale assessment

To use yet another metaphor (going well on the metaphors today!), a fish can't see water. Very often a business owner can't see what's around them. The owner can be so immersed in the day to day of the business that they can't see the strengths and weaknesses. It needs an external person who knows what to look for to do an in depth "business ready for sale" assessment of the operation. That's why I offer my "business ready for sale" assessment service. I've been a business owner and sold my business, been a business broker and sold many different types of businesses and have business owners I am coaching on an ongoing basis.

Getting an assessment done for the business by an external person with no emotional involvement with the business enables the owner to consider the many options for exiting. The final stage of the assessment service is where I get together with the owner and explore all possibilities for exiting the business.

Options for an owner exiting a business

Most owners have the following 'broad' options to exit (or grow), depending on the results of the assessment:

1. Put the business on the market and cash out

2. Spend time increasing the value and make it more saleable. Then cash out!

3. Sell off the assets and close up

4. Take on a partner to grow the business

5. Take on investors to grow the business

6. Transition the business to family

7. Transition to an employee

8. Sell to a competitor or a supplier

9. Merge with another business and become partners

10. Do nothing and keep doing the same old thing (not recommended)

The assessment is conducted like a broker would do a market appraisal plus a level of due diligence that a prospective buyer would do. In other words, assessing the business "warts and all". The owner gets to know what's involved in exiting a business and also gets to "feel" what it's like to go through the process without actually selling the business.

Best to go through this process BEFORE engaging with a broker or putting the business on the market yourself. Be prepared and remember a business that's ready for sale is well worth keeping.

Get started. Be a business owner taking action

You can start the process at no cost by investing about 4 minutes in completing my business saleability checkup online. Simply click the button below and answer the questions. You will receive a saleability score in seven different areas, a personalised report and some tips on making your business more valuable and more saleable. All at no cost to you.

Alternatively, if you would just like to have a quick no obligation chat about your business situation, click the link below to schedule a time.

P.S. In August 2024, an art appraiser and auctioneer, found an original Rembrandt painting during a routine “house call” to a private estate in Cambden, Maine, USA. The rediscovered artwork sold for $1.41 million at auction. Source: Smithsonian Magazine https://www.smithsonianmag.com/smart-news/painting-attributed-to-rembrandt-found-tucked-away-inside-an-attic-in-maine-180985036/