I sold my 12-year-old landscaping company last spring. My father was diagnosed with a serious illness and I needed to relocate across the country quickly. I took the first offer that came in, about 30% below what I think the business was worth. Now that things have settled, I can't stop beating myself up over it. Did anyone else sell under time pressure and regret the price? How did you come to terms with it, if at all?
Exit Strategy
Did you sell your business too cheap because you were in a rush?
I sold my auto repair shop in 2019 because my lease was up and I panicked. Took a lowball offer from a competitor. Still stings, but I try to focus on the fact that I avoided a potential bankruptcy if the lease renewal had fallen through. Not sure that gelps you though.
How did you determine the 30% figure? Did you have a formal valuation done after the sale?
No formal valuation. I'm basing it on what similar businesses in my region have sold for, plus a rough multiple of seller's discretionary earnings that I calculated after the fact. So it's not a precise number, but I'm fairly confident it was low.
I think the pressure of a health crisis changes everything. You didn't sell too cheap because you were careless—you sold because you had to. That's a different decision-making context. I'd try to separate the two.
Not buying the rationalization. You still left money on the table. That's a real loss. But it's done now. Dwelling on it won't change the outcome. Learn from it and move on.
QuietFury, that's a bit harsh. Sometimes moving on is the only option. But I get your point about not sugarcoating it.
I'd be interested to know if the buyer flipped it quickly. That often tells you whether you reAlly undersold.
The buyer still owns it as far as I know. No flip., But they did expand the service area within six months, which suggests they saw more potential than I was able to capture at the time.
Expanding the service area could just mean they had more capital, not that you left value on the table. Hard to say.
Or it means they saw an opportunity you missed. Either way, the past is the past.
Have you considered talking to a business broker or advisor about this? They might help you reframe it or at least give you a more accurate picture of what was realistic under the circumstances.