黑料门

In our newest episode, we talk to Joe Valley, a Certified Mergers and Acquisitions Professional. After building, buying, and/or selling a 1鈦�2 dozen of his own companies, Joe Valley helped build one of the leading online-focused M&A Advisory firms in the world.

After facilitating nearly 1鈦�2 billion in exits, Joe has written the bestselling book “The EXITpreneur鈥檚 Playbook” to help online business owners get the maximum value and best deal structure when they seek an exit.

Tune in for Joe鈥檚 insights, and don鈥檛 forget to download three free chapters from his book, just for the 黑料门 community:

Some key insights of the podcast include:

Getting the Basics Right to Build on Your Foundation

Set a specific goal for your exit time and value. Then reverse engineer a path to that goal. The more detail you bake into your vision, the clearer your path will be along the way.

Entrepreneurs get excited when they understand the actual value of their business. Getting the basics right starts with getting your books and accounting in order. If you鈥檙e just starting out, try a software tool like Quickbooks. Understanding a seller鈥檚 discretionary revenue is the key to understanding the actual value of your business.

The Peculiarities of Selling a Business

C-Corporations are harder to sell because they involve an asset sale, not a stock sale. Sales under one million dollars will typically be cash deals, with some cash set aside in escrow.

However, more than just assets will be involved in the contract. Post-sale, you鈥檒l need to stick around and help with the transition.

For most business owners, the most money is made at the exit. You should probably operate under that assumption and worry less about extracting a paycheck to maximize your business value.

Becoming an Exitpreneur

Learning to look at your business as a short-term project can help you build something great. Shifting your mindset from being an entrepreneur to an Exitpreneur, can be exhilarating, but difficult for some people to accept that they won鈥檛 continue to grow alongside every business.

It鈥檚 important to clearly understand how the money you are pulling out of a company will impact the end value of the business鈥檚 sale. Business owners often dramatically undervalue their business and leave tons of money on the table.

What Revenue Levels Are Buyers Looking for Today?

The four things buyers look at while deciding on a deal are: Risk, Growth, Transferability, and Documentation.

High total discretionary earning is the goal. Two-year-old businesses with six-figure discretionary earnings are ideal. Sell on growth years.

Ensure everything is in order, both in the ease of transferability of assets and the documentation of everything. The actual value of the business can vary wildly, depending on understanding the right time, in your business鈥檚 lifecycle, for the sale.

But there鈥檚 nothing in the world like the feeling that comes with the large bank account deposit following the sale.