The Game with Alex Hormozi How To Sell Your Business | Ep 351
Dec 2, 2021
Learn about four critical factors when selling a business, including cash components and future bonuses. Dive into the differences between financial and strategic buyers and their unique motivations. Explore the intricate process of business valuation and the importance of relinquishing control during growth. Get practical insights from personal experiences in mergers and acquisitions, along with valuable tips for scaling your business effectively.
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Business Exit Strategies
- Consider four exit strategies for your company: selling, closing, giving it away, or taking on debt.
- These options offer different ways to shift risk and potentially gain liquidity.
Selling Small vs. Large Businesses
- Selling small businesses (under $1M profit) is difficult due to higher risk and unsophisticated parties involved.
- Businesses with over $10M in sales can attract institutional investors, with $5M being a key threshold.
Enterprise Value Breakdown
- Enterprise value breakdown includes cash, seller financing, earn-outs (future bonuses), and rollover equity.
- Each component affects the deal's structure and the seller's ongoing involvement.