Codie SanchezFounder @ Contrarian Thinking

How to Sell a Business for Millions

20 Dec 2023 · 1 min

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Codie Sanchez breaks down how to build a business buyers will pay millions for. Keep no single client above 15% of revenue, document everything in SOPs, create recurring revenue streams, and plan for 60 days of due diligence before the deal closes.

Questions this video answers

No more than 15% of revenue.

60 days.

Chapters

Building a business that will sell for millions isn't going to be a cakewalk. This recipe will put you on track. Set your goals and valuations. Your goals and objectives will tell you what you want out of a sale. Tracking and documentation. More than three steps and you do it more than three times. I made a standard operating procedure for it. Diversifying. This step is all about de risking. Make sure that no one client makes up more than 15% of your revenue. Recurring revenue. You have scalable income. Freedom of time Increased value when you go to sale. Repeatable sales process. If you are the only salesperson, you don't have a business. You have a job. Productized service. If your business is not teachable, then you sell a service. Turning a cash suck business into a cash flow business. Cash flow business gets paid up front then provides the service. Key man risk business that's reliant on its owner is not really a sellable business. Buyers. Your goals for your business will determine the buyers that you need to pursue. Broker or intermediary. They should only have one goal to sell your business at the terms that you want. Business plan. It doesn't have to be crazy. The seller story. When you talk to buyers, you gotta be honest. Setting up your team for the sale. Due diligence. Due diligence typically takes 60 days at a minimum.