Nate Lind sells companies like realtors sell homes. He is a business broker at Website Closers, the largest marketplace of $1 million to $150 million dollar Internet, Technology and E-commerce businesses.

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Guest Resources

Nate’s Website – Interested in buying or selling online businesses?

Maximum Exit – Read Nate’s book for FREE!

3 Value Bombs

1) If you don’t have financials, get them. Get your income, all of your income itemized and categorized in QuickBooks. Get all your expenses into QuickBooks. Make sure that whatever it is you’re thinking about selling, it has its own bank account.

2) It’s going to be based on profit. If you want to start to get into the leagues where your sale is going to mean a potentially big windfall, then get yourself up to a quarter of a million dollars a year in profit.

3) Buyers will pay only as much as they feel the business is worth in terms of risk.

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: The Life-Changing Benefits of Selling Your Business

[1:05] – Nate shares something that he believes about becoming successful that most people disagree with.

You should sell your business when you don’t want to. When it’s so successful, when things are effortless, and when you don’t have any idea that you even want to sell it… That’s the time to do it.

[1:50] – Market demand definition.

The inventories are cash-flowing, mature businesses. These are internet, technology, and digital businesses – or one ring out from them.

[3:33] – How much will buyers pay for a business?

Buyers will pay only as much as they feel the business is worth in terms of risk.
We’re trying to answer the question “What’s in it for me?” in the buyer’s mind, and what’s in it for them is the highest return on their investment.
Buyers could buy based on the last year’s worth of profit, times a multiple, and that multiple could be anywhere between three times that trailing 12 months number and could be upwards of six times that trailing 12 months number.

[5:20] – How do we find out how many buyers there actually are out there?

It’s not too different than if you were to list your house with a realtor. You need to find a marketplace to list your business on so that you can reach the broadest network of buyers.
You have to get your business listed. Spend time “showing it to buyers”, just like a piece of real estate.

[6:51] – Finding out if actual buyers are interested in your company.

If your business has been around for at least two years and it’s making a quarter of a million dollars in cashflow, Website Closers would love to chat with you.
It’s going to be based on profit. If you want to start to get into the leagues where your sale is going to mean a potentially big windfall, then get yourself up to a quarter of a million dollars a year in profit

[9:23] – A timeout to thank our sponsors!

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[11:21] – The amount of cash to expect at closing.

One can expect about 70% of the enterprise value. That’s the total amount of the transaction in cash at closing.

[12:08] – What are other cash payouts or scenarios when selling a business?

He is incentivized based on his commission to make sure his client gets cash at closing.
He bans buyers who do 100% seller finance, or even the majority seller finance. Those types of buyers are a waste of time and it doesn’t end up being a transaction that’s worth it for his client.

[13:53] – Ways buyers typically pay for a business.

It’s like mortgages for houses.
For transactions over $5 million, we have to work with the capital markets

[15:33] – The first thing that buyers look for in a business.

Buyers usually want to see something like a business summary. It includes a bunch of information – Q&A about the business that’s prepared ahead of time.
The buyer is also going to want to see financials for as far back as you can go. But at least the last two years.

[16:30] – What to do before starting to sell your business.

If you don’t have financials, get them. Get your income, all of your income itemized and categorized in QuickBooks. Get all your expenses into QuickBooks. Make sure that whatever it is you’re thinking about selling, it has its own bank account.

[17:29] – Nate’s key takeaway and call to action.

Nate’s Website – Interested in buying or selling online businesses?
Maximum Exit – Read Nate’s book for FREE!

[20:18] – Thank you to our Sponsors!

Liquid I.V.: The category-winning hydration brand fueling your well-being! Grab your Liquid I.V. in bulk nationwide at Costco, or you can get 20% off when you go to LiquidIV.com and use code FIRE at checkout!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!

The Life Changing Benefits of Selling Your Business with Nate Lind

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