Western Specialty Gallery Sold for $1.9M, LOI in 20 Days

About the Business

• Industry: Retail – Multi-Location Specialty Gallery and E-Commerce

• Location: West

• Size: $4M–$5M in annual revenue, $500K–$750K in cash flow, about 20 employees

• Sale price: $1,900,000 plus inventory (asking price: $1,750,000)

• Listing to signed LOI: 20 days

• Signed LOI to close: 111 days

The Challenge: Retiring Without Giving Up the Local Touch

The owner was ready to retire, and long-tenured managers already ran the stores day to day. She wanted a buyer who would live nearby and run the business in person.

20 Days to a Signed LOI: Two Offers Above Asking

What happened at every stage

1. Valuation: Baton set the asking price at $1,750,000, about 3.2 times cash flow. Inventory was left out of the price, to be settled separately at closing.

2. Buyer Outreach: Baton marketed the listing on its own marketplace and partner sites. 60+ buyers viewed it, 24 opened the data room, and the owner met 3 buyers on advisor-hosted calls.

3. Offer Selection and Negotiation Support: Within 11 days of launch, Baton had 2 LOIs above the asking price: $1.9M all cash and $2.2M with SBA financing. The owner chose the all-cash offer from buyers who planned to run the business in person over the higher bid from a remote owner.

4. Diligence and Closing Support: Diligence and the purchase agreement were done 18 days after the LOI. Closing then waited on the buyers' relocation timeline, and the Baton advisor sent the owner weekly updates until the deal closed 111 days after the LOI.

The Results

The buyers are owner-operators who moved to the area and now run the business alongside its long-tenured managers. Through Baton's process, the business:

• Sold for $1,900,000, $150,000 over its asking price

• Received 2 LOIs within 11 days of going live

• Closed 100% in cash, with no bank loan, seller note or earnout, and inventory paid on top of the price

What's next for the owner?

The owner is retired. She has since referred another local business owner to Baton.

Advice and Lessons for Future Sellers

1. Price large inventory separately. Keeping inventory out of the asking price let buyers compare offers on the business alone.

2. Weigh certainty, not just the top number. The owner picked an all-cash offer from hands-on buyers over a higher, financed bid.

3. Plan for the buyer's timeline. Diligence took less than three weeks, but closing depended on when the buyers could move.