Imperfections Don’t Make Your Business Unsellable

For business owners considering their endgame, either now or in the future, learning what makes a company valuable can feel overwhelming. ?Buyers prioritize factors like recurring revenue, a differentiated product or service, and a leadership team that operates independently from the owner. ?If a business doesn’t check every box, it can seem as though selling is perpetually just out of reach.?

But perfection is not a prerequisite for a sale. ?While improving the key drivers of value is important, an imperfect business can still be highly desirable to the right buyer. ?In fact, some Buyers actively look for businesses with fixable flaws because they see an opportunity to increase value.?

Blake Hutchison on Why Imperfections Can Be to an Buyer’s Advantage?

Blake Hutchison, CEO of Flippa, has witnessed thousands of business acquisitions. ?Flippa is an online marketplace where business owners can buy and sell companies, particularly small to mid-sized digital businesses. ?The platform connects sellers with buyers looking for opportunities to grow or optimize an acquisition.?

In a recent?Built to Sell Radio?interview, Hutchison explained that many business owners assume their company won’t attract buyers because it has shortcomings. ?In reality, most Buyers aren’t looking for perfection—they’re looking for potential. ?Many buyers have a strategic advantage, whether it’s a strong distribution network, operational expertise, or access to capital, that allows them to take an imperfect business and make it more valuable.?

A prime example of this is the acquisition of PetCoach.?

How PetCoach Turned an Imperfection into a Selling Point?

PetCoach, co-founded by Brock Weatherup, was a two-sided marketplace designed to connect pet owners with veterinarians. ?The challenge for any marketplace business is keeping both sides in balance—generating enough demand from pet owners while ensuring there are enough veterinarians to meet that demand.?

PetCoach had built a strong product, but it lacked a broad distribution channel to acquire pet owners at scale. ?Without a solution, growth would remain limited. ?Instead of seeing this as a dealbreaker, Weatherup positioned it as an opportunity for the right buyer.?

That buyer was Petco. With more than 1,500 locations across the U.S., Mexico, and Puerto Rico, Petco had access to millions of pet owners. ?By acquiring PetCoach, Petco could instantly expand its offerings while solving PetCoach’s biggest challenge.?

Weatherup didn’t need to fix the scalability issue before selling. ?He needed to find an acquirer for whom the business’s weakness was actually a competitive advantage.?

Your Business Has Value—Even if It’s Not Perfect?

This doesn’t mean business owners should ignore the fundamentals of value creation. ?Strengthening factors like recurring revenue, customer retention, and operational efficiency will always increase a company’s attractiveness. However, not every issue needs to be resolved before an exit.?

Instead of viewing imperfections as obstacles, business owners should consider how an acquirer might perceive them:?

• A company struggling with customer acquisition may be a great fit for a buyer with an established customer base.?
• A business with inefficient operations might attract an acquirer with expertise in streamlining processes.?
• A company overly dependent on its owner could be appealing to a buyer with a strong leadership team ready to step in.?

As Blake Hutchison explains, Buyers are often looking for businesses where they can add value. ?The key is to position the company in a way that highlights its strengths while framing its imperfections as untapped potential. ?The right acquirer won’t see weaknesses as dealbreakers - they’ll see them as opportunities.?

If we can help, or if you have other concerns, please schedule a time for us to talk about it HERE.

Source:? The Value Builder System