The $145K Lesson: Why DIY Business Sales Rarely Go As Planned

A true story about selling a business and the lessons learned along the way.

The Photo That Led to an Awkward Conversation

In May 2025, two business owners contacted me after being referred by a colleague. They ran a successful dental prosthetics laboratory in California, manufacturing crowns, bridges, and other dental products for local dentists. The business was thriving: strong revenue growth, loyal customers, high-quality staff, and a pristine facility. After just two years in business, they'd built something impressive.

They decided to sell their business and took what seemed like the logical first step: they listed it for sale on a popular business-for-sale website. They wrote up a description, posted some photos, and waited for serious buyers to contact them.

What happened next is every business owner's nightmare.

One of the photos they used was also visible on their Google Business profile. A prospective buyer did a reverse image search, identified the business, and showed up unannounced at their facility. He walked in and started asking employees if he could meet with the owners because "the business is for sale."

There was just one problem: the employees had no idea the business was for sale.

The Domino Effect of Lost Confidentiality

The owners were mortified. They had to gather their team (good people who had been instrumental in building this business) and explain that yes, they were planning to sell. They had to reassure everyone that this wasn't about the business failing or anyone losing their jobs. They had to hope that their employees wouldn't start looking for other opportunities out of fear or frustration.

Fortunately, the employees understood and expressed a willingness to stay through a transition. They had faith in their employers and the business they'd helped build. But the damage was done. The owners were stressed and uncertain about how to move forward.

On top of that: they had undervalued their business by nearly $145,000.

The Valuation Reality Check

The first step was providing a broker's opinion of value. Most business owners who try to value their own business make one of two mistakes: they either overvalue it based on emotional attachment, or they undervalue it because they don't understand what buyers actually pay for.

These owners had done the latter. Their asking price was essentially a guess, a number they hoped to get based on what felt reasonable to them.

The revised valuation was based on Seller's Discretionary Earnings (SDE), industry multiples, and the specific value drivers of their business. When reviewing the analysis, they were surprised. Typically, business owners receive difficult news that their business is worth less than they think.

Between the lost confidentiality and leaving $145,000 on the table, their DIY approach to selling would have been an expensive mistake.

Establishing a Professional Process

The path forward required a clear strategy:

1. Broker's Opinion of Value to understand the true market value

2. Confidential marketing with an anonymized listing

3. Buyer screening through NDAs and buyer profiles

4. Strategic outreach to ideal buyer prospects

5. Guided negotiation through offer, due diligence, and closing

The key difference? Professional representation would handle finding and screening buyers, protecting their confidentiality while maximizing their exposure to serious prospects.

In June, they signed the representation agreement. Instead of waiting for random buyers to stumble across an online listing, the approach was proactive. A comprehensive list of dental labs and dentists was built on LinkedIn, with individual outreach to each. Most business brokers don't do this. They simply post on BizBuySell and wait. But targeted outreach brings in prospective buyers that a passive listing would never reach.

The Right Buyer Makes All the Difference

By mid-July, the first buyer tour was scheduled. Over the next few weeks, the business was presented to four serious prospects. Each one had to sign an NDA, complete a detailed buyer profile, and pass a screening process before they ever learned the name of the business or saw any financial data.

The tours went exceptionally well. Prospective buyers were impressed by the spotless, well-organized facility and workstations, the quality of the work being produced, and the enthusiasm and expertise of the team. The documented processes and procedures, clean financial records, and strong reputation with local dentists all contributed to buyer confidence.

At the end of July, they accepted an offer from a buyer I'd connected with through LinkedIn, someone with the right experience and a clear plan for growing the business. Even better, one of the owners was excited to stay on in her role as a lab technician. She loved the technical work but had never enjoyed being an owner. This continuity made the business even more attractive to the buyer.

Closing the Deal

By mid-October, the sale was complete.

The owners walked away with more money than they'd initially expected, a strong relationship with the buyer, and confidence that the business they'd built would continue to thrive. The employees kept their jobs with an owner who had the resources and vision to take things to the next level.

The stress and uncertainty from May’s DIY listing had given way to relief and satisfaction.

Lessons Every Business Owner Should Know

Whether you're planning to sell next year or a decade from now, here are the takeaways from this story:

1. Confidentiality is Everything

Word that your business is for sale can cause employees to seek other opportunities, make customers nervous about continuity, alert competitors to potential weaknesses, and reduce your negotiating leverage. Understanding why confidentiality is critical when selling a business can help you avoid these pitfalls.

A professional process protects confidentiality through anonymized listings, NDAs, and buyer screening. A photo on BizBuySell that matches your Google profile does not.

2. Valuation Requires Expertise

Your business is worth what a capable buyer will pay for it based on financial performance, growth potential, and market conditions, not what you hope to get or what you think seems fair. Get a professional valuation. Do it now, even if you're not planning to sell for years.

3. The Best Buyers Aren't Always Searching Online

Strategic outreach to industry contacts, competitors, and adjacent businesses often yields better buyers than passive listings. The winning buyer in this case came from a direct LinkedIn outreach, someone who wasn't actively searching for a business to buy but recognized a great opportunity when presented professionally.

4. Selling is Harder Than You Think

The path from "I want to sell" to "the money is in my account" involves valuation and pricing strategy, marketing and confidential outreach, buyer screening and vetting, offer negotiation, due diligence management, purchase agreement drafting, financing coordination, and closing logistics. Common questions about the sale process are answered here.

First-time sellers navigate this once. Professional brokers do it constantly. That experience matters at every step.

5. Start Preparing Early

The owners in this story did several things right that made the sale possible:

• They maintained clean, accurate financial records

• They documented their standard operating procedures

• They built a strong reputation with customers

• They hired quality employees

• They kept their facility professional and organized

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These weren't things they could create in the weeks before listing. They were the result of running the business properly from day one.

Three Actions to Take Today

Wherever you are in your business ownership journey, do these three things:

1. Get a professional valuation every year. Understanding current market value is essential for making informed decisions about your business, your exit timeline, and your asking price. You never know exactly when you'll exit your business. This story is a perfect example of an early, unplanned exit.

2. Run your business like you're selling it tomorrow. Clean books, documented processes, and organized operations aren't just good for selling. They're good for running a valuable business. Start now.

3. Talk to a business broker before you need one. Understand the fundamentals of value and the sale process long before you're ready to list. When the time comes (whether planned or unexpected), you'll be prepared.

The Bottom Line

These two business owners built something valuable in just two years. Their revenue growth, customer relationships, and operational excellence created real market value. But they almost gave away $145,000 and compromised their confidentiality because they didn't understand what they didn't know.

The happy ending came because they recognized the problem, asked for help, and trusted the process.

You don't get a second chance to sell your business for the first time. When that moment comes, make sure you're working with someone who has successfully guided many sellers through it.