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What I wish I knew before selling a business...

Name: What I wish I knew before selling a business...
Uploaded: 2022-04-17T15:00:30+00:00
Duration: 30 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief monologue, Shanli Liu, CPA, CTP, shares a key insight she wishes she had known before selling a business: prospective buyers are wary of…

17 Apr 2022 · 1 min

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In this brief monologue, Shanli Liu, CPA, CTP, shares a key insight she wishes she had known before selling a business: prospective buyers are wary of companies that rely heavily on a few customers or a single sales channel. Buyers prefer businesses with diversified revenue streams—multiple clients, varied marketing platforms (e.g., Facebook, Instagram, YouTube), and a range of products sold across those channels. Such diversification reduces perceived risk and makes the business more attractive during acquisition negotiations.

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I wish I had known before selling a business. Most people don't want to buy a business where the majority of the revenue is coming from just a few clients. It's too risky for them. They want diversification of revenue, which means you have lots of clients the revenue is spread through. They also want to ensure that you have diversification of revenue in terms of where the revenue is generated. If you're only getting revenue from Facebook, that's too risky for them. What if you have Facebook, Instagram, YouTube? That looks much better. And if you want to go a step further than that, then it's just what products do you sell through those multiple channels. So you have multiple products on multiple channels with lots of customers.