For the longer version, including where your real number should start, read the article What I wish I had done before selling my business.
Transcript
The hardest part of selling my business wasn't the paperwork. It was everything else nobody told me to prepare for.
I spent about six years growing my senior care company. And looking back, there are three things I wish I had done sooner before I sold.
The first is deciding what life looks like after the sale. I don't mean just the sale price. I mean the Monday morning after. If you skip that part, it's easy to regret even a good sale.
Next is knowing your real number before you talk to anyone. Not just what your friend got. Buyers pay a multiple of profit that they can verify in your tax returns. So that's where you start.
And the third is making yourself replaceable. Ask yourself, if I took 30 days off, where would the business break? Whatever breaks is what a buyer sees as risk.
Selling is a financial decision, but it's an emotional one too. And it's easy to only prepare for the money side. So if an exit is anywhere in your next few years, save this one.
Thinking about buying or selling a business? Talk with me about selling, or browse the video library.
