Why Companies Valued Below $3 Million Are Difficult To Sell

Here’s something we learned early on in our business: companies with revenue below $3,000,000 are difficult to sell for a good price. The profitability is too low for a buyer to support debt payments and leverage growth. To sell, you will need a plan to increase size and profitability. BJ Lechner and Don Moore, partners in Decision Associates M&A, talk about how to get this size of company ready for the day you decide to sell.