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Want To Sell Your Business for Millions? 3 Things You MUST Do..

Name: Want To Sell Your Business for Millions? 3 Things You MUST Do..
Uploaded: 2022-03-26T18:17:33+00:00
Duration: 41 s
Channel: Shanli Liu, CPA, CTP
Description: In this concise business‑advice segment, the speaker outlines three critical factors that potential buyers evaluate when considering the purchase of a…

26 Mar 2022 · 1 min

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In this concise business‑advice segment, the speaker outlines three critical factors that potential buyers evaluate when considering the purchase of a company. First, a clear and compelling unique value proposition—the 20% of the business that differentiates it from competitors and protects market share—must be easily articulated. Second, the business should generate sticky or recurring revenue, guaranteeing that the customer base and cash flow remain stable for months after acquisition without the need for new sales. Third, a solid management team must be in place so the company can operate independently of the founder, reassuring buyers that the enterprise isn’t dependent on a single individual’s expertise. Together, these elements position a business as a viable, high‑value acquisition target.

Chapters

You're trying to build a business that you think someday you want to sell, make sure you have these 3 things. The first one is a unique value proposition. So what they want to look at is when you look at a competitor, they're going to say, what's the 20% of your business that's different from that competitor that's going to keep your market share? That's the thing that you have to be able to verbalize to somebody. The second thing is they want sticky or recurring revenue. They want to know that once they buy the business, even if you didn't add a single customer, that you're going to have the same amount of customers 6, 9, 12 months from now. And then the third thing is they want a solid management team in place. If you come in and you're the CEO and you're answering all the questions when a firm is who's interested in buying you, they're going to think, oh, this whole thing is run off them, they're the genius with a thousand helpers, they're not going to have any interest. So you need a solid management team, you need recurring revenue, and you need a unique value proposition.