4min chapter

The Game w/ Alex Hormozi cover image

How to Sell a Business | Ep 385

The Game w/ Alex Hormozi

CHAPTER

What's the Bottom Line of Deal Killers?

Enterprise value is a discount applied to future sales, which means you have to take the total amount of sales out of business stakes between now and the end of time. What's the likelihood that that occurs? All right, and so if you can show that you have a lot of future sales are gonna happen, and it's very, very likely that they're going to occur, then you have a very, very valuable business. If someone has sold lots of e-commerce but they've only done deals that are like 500 million and up, and you're doing like 10 million top line, you're not gonna be a fit for them because the check is too small.

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