Are you ready to sell your business?
Most entrepreneurs believe they are but aren’t.
Buyers hope and pray that you believe you’re ready to sell your business even though you’re not.
Every mistake you make is your hard-earned-money in your buyer’s pocket.
Here’s a question for you.
You’ve worked hard and built your business from scratch. Sleepless nights, grit, and passion transformed your business into a success.
It’s a great feeling knowing that your decision to put everything on the line has worked out.
Congratulations, you’ve beaten the odds.
Out of nowhere, you receive a 7-figure offer from a sophisticated buyer who works at a large company.
What do you do?
Most entrepreneurs grab the offer and run off into the sunset.
You’re a hero with your friends, family, and the local community.
You made the correct decision, right?
The sad truth is that you were not ready to sell your business.
Not by a long shot.
Who am I, and how do I know?
I was the kid who started his EdTech right out of school with no money, experience, or team.
I was also that entrepreneur you read about with the 7-figure offer.
The difference was that I said “no” to the 7-figure offer.
Instead, I said “yes” to mastering the art and science of selling a company.
Two years later, I said “yes” to a 9-figure based on 13 times EBITDA.
What I learned shocked me. The ugly truth is that the system is set up against entrepreneurs from day one.
How do you know when you’re ready to sell your business?
Keep reading to learn and master five key things you must do to prosper and win.
You’re Not Ready To Sell Your Business Unless Your Company Runs Without You
Freedom is the oxygen of the soul — Moshe Dayan
You’re not ready to sell your business until your company runs without you.
End of story.
Why is it essential that you’re company runs without you?
Buying your company is both an opportunity and a risk for your buyer.
Buyers pay more money for companies that run without their founders.
Believe it or not, you won’t be with your company long after your exit. Either the buyer will ask you to leave, or you’ll want to go.
Your future buyer is banking on your profit level being the same, or better, without you.
Read and prosper from “Why You’ll Be Happier And Richer When Your Company Runs Without You.”
Having your company run without you helps you attract and keep top talent. Employees need to know that there is a career progression for them.
With you on the sidelines, you can build the dream team to take your company to new levels.
As important, your “free time” allows you to do what you do best.
Go back to the beginning. You started your company because you were passionate about solving a painful problem. Your ability to remove the pain transformed your customers into raving fans.
You now have the time to find new problems that you’re passionate about solving. New opportunities take you into new markets.
With your dream team running the day-to-day and you finding new problems to solve, profits soar.
Do this today, and you’ll thank me tomorrow.
Ready to find out the one person you must hire to help you dominate and win on your exit?
Hire A Chief Exit Advisor
A Chief Exit Advisor transforms the ordinary into the extraordinary — Jeffrey Feldberg
You’re not ready to sell your business until you hire a Chief Exit Advisor.
The skills you mastered to build your business aren’t the same as selling your business.
When it comes to selling your business, you have one chance to get it right and you better make it count.
Enter the Chief Exit Advisor.
A Chief Exit Advisor is an individual with a track record of success in buying and selling companies.
Read and prosper from “A Chief Exit Advisor: What You Need To Know To Dominate And Win.”
Your Chief Exit Advisor is loyal to you and you alone.
Do you believe that your exit team and investment banker are loyal to you and there to protect you?
Stop believing this myth.
Given a choice, your investment banker will choose your buyer over you. All-day. Everyday.
To your investment banker, you’re a one-time transaction. Your investment banker will do many deals with your future buyer.
Your exit team sees you riding off into the sunset with a bank account full of zeroes. It’s also your exit team that a mortgage to pay, a family to support, and your former business to run.
Your future buyer is smart, sophisticated, and experienced. Every mistake you make lines your buyer’s pocket with your money.
The right Chief Exit Advisor prevents you from making the mistakes every buyer wants you to make.
And at the same time, a Chief Exit Advisor helps you do one of the more essential things in selling your business.
Do what this one “thing” is?
Don’t Even Think About Selling Your Business Until Your Exit Team Is In Place
Extraordinary exits are born from extraordinary exit teams — Jeffrey Feldberg
You aren’t ready to sell your business until your exit team is in place.
What’s an exit team, and why is it important?
Your exit team interfaces with both your investment banker and your future buyer.
It’s your exit team that assembles the information required to sell your business.
Read and prosper from “Assembling Your Exit Team? How To Crush It And Win.”
Members of your exit team include key employees, accountants, and lawyers. Add to the list your investment banker, tax advisor, and strategic advisor.
Does the process sound complicated and costly?
Think of it this way. The cost of an exit team is a rounding error from the extra value generated for your company.
Buyers hope and pray that entrepreneurs don’t have an exit team. Remember, every mistake you make lines your future buyer’s pocket with your money.
Starting to see the value of a Chief Exit Advisor?
Your Cheif Exit Advisor helps you assemble your exit team, saving you time and money in the process.
By the way, another important reason for your company to run without you is the exit process itself.
Selling your business becomes a full-time focus, especially near the end.
Even with the best exit team helping you, selling your company will take up most of your time.
You have once chance to get it right, and you better make the most of the opportunity.
Even with your exit team in place, you’re still not ready to sell your business.
You’re Not Ready To Sell Your Business Until You Master The Art Of Due Diligence
Before anything else, preparation is the key to success — Alexander Graham Bell
Picture in your mind receiving an unsolicited offer to buy your company. You retire, and you’re now wealthy beyond your wildest dreams.
Your future buyer hopes and prays that you believe in the above scenario.
While the above story does happen, you’re more likely to see it in a movie.
The truth is that you’re not ready to sell your business until you master the art of due diligence.
Read and prosper from “The Due Diligence Mindset You Need To Win.”
What’s due diligence, and why does it matter?
Due diligence is where most deals fall apart, and for a good reason.
The process of due diligence is time-consuming, challenging, and costs money.
Think of due diligence as your way of “proving” to your future buyer why your company is worth what it’s worth.
Ready to learn a little-known-strategy that will set you up for success?
Assemble your exit team and complete your due diligence on your company.
Do yourself a favor and do two things.
First, hire your investment banker afterward.
Second, create your virtual data room to store your information.
The due diligence process helps you find and fix the skeletons in your closet before you sell. Your company benefits, and your value soars.
You’ll also impress your investment banker when you show up with your data room. After all, you have one chance to make a great first impression.
Due diligence is your solution to buyers who try to “convince” you that your company is less. Spend the time, put in the effort, and reap the rewards with due diligence.
Do you know how to make your company value soar?
Your Business Model Sucks And What You Need To Do About It Before Selling
Show me your business model, and I’ll show you your future — Jeffrey Feldberg
Your business model sucks, and you’re not ready to sell your business.
Harsh words, but true for most entrepreneurs.
How did I achieve a 9-figure exit?
The short answer is the business model.
Read and prosper from “Why Your Business Models Sucks And What You Need To Do About It.”
I made three changes to my business model that put growth and profits into the stratosphere.
What were the three changes?
First, I converted my business model into a recurring revenue model through subscriptions.
Second, I stopped charging a fee-for-service. Instead, I shared revenue with my customers.
Third, I had long term contracts that were up to 10-years in duration.
But it was both revenue sharing and long-term contracts that created tremendous value.
Revenue sharing created massive profits and long-term contracts gave visibility into the future.
Buyers place a premium on companies that have high profits. Buyers place an even higher premium when profits are dependable and predictable.
What should you do?
For starters, change your business model to a subscription-based service.
Your challenge is having customers agree to both revenue sharing and long-term contracts.
Easier said than done.
You must have a compelling reason for revenue share and long-term contracts.
Revenue sharing and long-term contracts have you find and solve a big and painful problem.
Learn how I achieve my goal by reading “How I Built An 8 Figure Company (With No Business Experience).”
It’s only when you create a business model that rocks that you’re ready to sell your business.
Do this today, and you’ll thank me tomorrow.
If you’re like most entrepreneurs, you are not ready to sell your business.
Buyers not only know this and are hoping you are not ready to sell your business.
Buyers will pay a lower value for your business.
When you’re not ready to sell your business, you leave your hard-earned money on the table for your buyer.
Who am I, and how do I know?
I was the kid who started his company right out of school with no money, experience, or team.
The one thing I could depend on was failure. All-day. Every day.
My grit and passion kept me in the game long enough to achieve success.
Saying “no” to a 7-figure offer had me say “yes” to mastering the art and science of selling my business.
What I learned shocked me to the core.
The system is set up against entrepreneurs from the start.
Knowing what not to do is often more important than knowing what to do.
I’ve revealed five key strategies that led to a 9-figure exit from a different buyer.
If I can do it, so can you.
What do you do and where do you start?
Start with the first strategy and stay with it until you master it. Move on to the next strategy until you’ve mastered all five.
Once you’ve mastered all five strategies, you’re now ready to sell your business.
You have once chance to get it right when selling your business, and you better make it count.
The great news is that you already have everything you need within you.
Here’s to you and your success.
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Want Honest Advice? You Are Not Ready To Sell Your Business was originally published on JeffreyFeldberg.com