Select your annual revenue below, then read about what we will be doing together to accelerate your business for sale. Ideally, you have 3-5 years before your exit so we can properly prepare for exit and can focus on 3-5x’ing the value that your business will go to market for.
If you don’t have 3-5 years, we can still help drastically increase your multiple. So read on and then take the next step!
If you have a business producing less than $1M in revenue and you are thinking about selling your company, the first step you need to determine is how much you need to retire or move on to the next stage of your life.
Then, you need to figure out if your business, as is, will sell for that amount. That will require a valuation. We can help you there.
If the answer is no, then you need to understand what that gap is and put together a plan of action to increase the value of the company to meet that value.
We know where you are at:
The Good News is that by driving your company to 7 figures alone, your multiple increases. So not only will you have more transferrable value through increased profits, your multiple will increase too. Hence the importance of driving hard to get above 7 Figures before you sell, if you ahve time.
The main challenge is that when your business is less than 7 figures, you are involved so much in the business day to day. It makes it very hard for a new person to come in and buy your business…unless they are one of your competitors who already knows your craft inside and out, and maybe already have systems in place and they don’t need you or your systems and likely a few of your employees too.
So how does this affect your business sales price…well it hurts it a lot. In this range your business pricing is likely in the 1-3x SDE (sellers discretionary earnings) range. Most businesses we encounter are in the lower end of that multiple.
So that means, if you take your annual salary and profits, subtract the cost of the new owner having to replace you with someone else, then multiply by maybe 1.5 or 2, maybe 2.5 at most…that is what you could expect to get for your business. I know, I know, not what you wanted to hear. But, it is the truth.
I mean, you could list it for sale at that 4-5x multiple of your salary and profits because your CPA told you that it could sell for that…and watch it sit on the market for 6 months, then a year. By then you are growing tired of servicing the clients because your mind is on retirement. And then it just sits longer and your profits erode further until you have nothing. This is the same story I see time and again.
It is very difficult to find a buyer for a business under $1M that will pay you more than 1-1.5x your salary and profits. People want a business that doesn’t require them to work a full time job. People want a business, not to buy a job. People don’t want to take over your hassles and stress
Let’s huddle for a minute and talk about what the PPPP Plan is and what you need to do to turn it all around and triple what you could get for your business, or more if you have time…
It’s simple, but not easy. This will take work.
It means that within 1-2 years (or sooner, depending on you), you have an Exitable Business that:
Depending on where you are right now, you might be find yourself in 1 of 3 places…
Let’s hop on a quick 20 minute call and chat. Basically, I just need to make sure that I think we can, in fact help you. We can help most, but not everyone. So this will be a quick chance for you to get to know us and us to get to know you.
You pretty much know what we can do for you (I explained it above). If you are calling to make this appointment, you already know what it is we do, and that marries up with what you want and need. This call is just a little clarification and verification from both ends, then we can be rolling up our sleeves together.
Talk directly with Patrick today:
SCHEDULE APPOINTMENT NOWIf you are in the $1M – $10M range and thinking about selling your business, the first step you need to determine is how much you need to retire or move on to the next stage of your life.
Then, you need to figure out if your business, as is, will sell for that amount. That will require a valuation. We can help you there.
If the answer is no, then you need to understand what that gap is and put together a plan of action to increase the value of the company to meet that value.
We know where you are at:
The main challenge when you are looking to scale from $1m to $10M, is that what was working before for getting new clients…isn’t working anymore and you don’t know why. For some reason, the new sales has stalled out and no matter what you try, you just cant seem to get the momentum to break through.
It could be that you are not getting the number of leads that you were before, or the right kinds of leads. Or it could be that your sales team is just not as proficient as you were when you were the main person selling. Bottom line, your new sales has stalled out a bit, or at least slowed down greatly…it could be sales or or marketing, or both.
And as you progress through and get closer to $10M, you start to find that your team gets more and more disengaged and less motivated for producing results, or at least not to your standards. Or maybe they are motivated and trying real hard, but it could be that you don’t have the right people in the right places to help you make the leap to $10M.The last part of the challenge that you need to know is that the method that we use to calculate the value of a business is:
Value = (EBITDA X Multiple) + Assets
The multiple is almost 100% dependent on the intangibles in the business. The back end. The communication. The ability of the business to function and grow 100% without you. The predictability of the company to continue to grow. The risk that an owner has to take on.
Here are some immutable laws about scaling and preparing to exit a business in the $1-$10M range:
The truth is, you CAN still scale your company past the $10M mark before you sell, if you have 3-5 years, and even if you tried a number of times.
The truth is, you CAN walk away from your company with 3-5x more than you can now, if you have 3-5 years to commit before you sell.
The truth is, even if you only have 1-2 years, you CAN come close to doubling what your business could sell for.
We host monthly Executive Roundtables for Business Owners and CEO’s with an annual revenue of $5M or more looking to sell their business in the coming years. In this mastermind forum roundtable, we will discuss the challenges associated with creating an appealing business that will run without your direct involvement.
In this discussion, we share our “Exitable Business” strategy; 3 simple steps to transform your company into a highly attractive business. You will learn EXACTLY how to triple or more the transferrable value of your company. Our methodology has brought a $5 million client to sell their company for $22 million.
If you are above the $10M range and thinking about selling your business, the first step you need to determine is how much you need to retire or move on to the next stage of your life.
Then, you need to figure out if your business, as is, will sell for that amount. That will require a valuation. We can help you there.
If the answer is no, then you need to understand what that gap is and put together a plan of action to increase the value of the company to meet that value.
We know where you are at:
The good news is that it is relatively easy to get the train back on the tracks and maximize your multiple. In less than 1 year, without any growth initiatives, you can maximize your multiple and prepare your business for sale. If you have 3-5 years, you can add additional value acceleration strategies that will dramatically grow revenue, profits and multiples.
The main challenge when you are looking to scale and drive values when your business is above $10M…is your systems and your people.
Typically, you have the marketing and sales game down. You couldn’t have gotten above $10M without it. But as we grow further and further past $10M, you and adding more and more employees who are now twice or even three times removed from your direct influence. Protocols, procedures and priorities are changing in ways that you don’t really want.
You try not to micromanage and learn to deal with the inconsistencies, but as it persists, you continue to notice that there is an increasing disconnect between your vision and core values of the company compared to what you are seeing.
You start to really see that the importance of providing every client with the utmost care and personal service is slipping. However because there are so many communication gaps between yourself, your leadership team and the rest of the company…customer service problems continue to develop faster than your company can handle them.
Here are some immutable laws about scaling and preparing to exit a business above the $10M range:
The truth is, you CAN increase your multiples significantly by focusing on your intangible operational structure and systems, and drive value in less than a year without growing revenues $1.
The truth is, once your new structure is in place, you can grow aggressively and perhaps faster than you had ever previously imagined.
The truth is, if you are thinking about exiting in the next 3-5 years, you have to start now. It is imperative to start now or you could be leaving millions, or tens of millions on the table.
We host monthly Executive Roundtables for Business Owners and CEO’s with an annual revenue of $10M or more looking to sell their business in the coming years. In this mastermind forum roundtable, we will discuss the challenges associated with creating an appealing business that will run without your direct involvement.
In this discussion, we share our “Exitable Business” strategy; 3 simple steps to transform your company into a highly attractive business. You will learn EXACTLY how to triple or more the transferrable value of your company. Our methodology has brought a $5 million client to sell their company for $22 million.
We limit seating to 7 individuals to incite a meaningful discussion. Seats go quick, so enter your information below to apply for a seat at our next roundtable.