Title: Title: Should I Build Custom Software or Buy an Existing Solution Before Selling My $5M Business? A Cost Analysis Tagline: Maximize Exit Value by Optimizing Operational Efficiency Problem: John, a 62-year-old owner of a successful manufacturing company worth $5 million, is planning to sell his business within the next year. He's identified that improving inventory management could significantly increase the company's efficiency and attractiveness to potential buyers. John is torn between developing custom software tailored to his specific needs and purchasing an existing software solution. He needs a clear cost-benefit analysis to determine which option offers the best return on investment before he puts the business on the market. Solution: We can use the Build vs Buy Calculator to analyze the costs associated with each option, considering factors like development costs, maintenance expenses, training fees, and the potential impact on the company's valuation. By comparing these figures, John can make a data-driven decision that maximizes his return on investment and strengthens his business's appeal to potential buyers. ROI: By implementing the chosen solution, John can potentially increase his company's valuation by 5%, resulting in a $250,000 increase in the sale price. Choosing the Build option would cost $150,000 in development, whereas the Buy option would cost $50,000 upfront plus $10,000/year. Implementing the buy solution saves $40,000 in maintenance costs compared to the build option within one year before the sale, resulting in an overall savings of $140,000. Description: Discover whether investing in custom software development or purchasing an off-the-shelf solution is the smarter move to enhance your business's appeal and profitability before a sale. This calculator helps you make an informed decision, leading to a potentially higher valuation and smoother transition. Category: Lead Gen Calculators: Build vs Buy Calculator, Agent Labor Arbitrage Calculator, Tax Equivalent Yield Calculator, Quick Ratio Calculator