Selling a successful business is a time machine.😮
During my group coaching call this week, I spoke about the relatively unknown game that is being played in business; Exits and acquisitions.
It’s heartbreaking to have hundreds of conversations with owners who were seeking guidance on selling their companies… only for them to discover their companies weren’t worth buying.
Data suggests that only about 20% of businesses are acquired, because the majority of them aren’t building enterprise value that attracts a potential buyer. And for those that do sell, the average sale is only in the ~200K range.
I want to raise your awareness of this bigger game. For a moment, step outside of your focus on daily operations and think beyond your current phase of business. If you don’t, you’ll miss out on potentially life-changing opportunities.
Building and selling a company for millions is a time machine for those of us that didn’t grow up rich, or have a trust fund.
I didn’t realize this until after I sold my first company in 2007. It wasn’t even a thought I considered, because I didn’t know anyone with the experience, and nobody was sharing this perspective with others.
With a 5X multiple on exit valuation, some inexperienced owners only see that as 5 years profit placed in their hands, in advance. While 5 years is good, they’ve not understood the complete time travel aspect, yet.
Prior to the sale, I enjoyed a healthy multi-6-figure annual income for several years. But even at that income level, it would have taken me 20+ years to maintain the lifestyle I had, and also save up an additional 7-figures in my bank account.
Don’t believe me? How many decades do most people have to work with a 6-figure income, in order to save up a million in 401K? It’s a long, long time.
💥Boom! 20 Years of time travel in terms of financial liquidity standings. I actually estimate that every million is worth about 20 years for a 6-figure salary earner.
Then you have the time freedom aspect to consider. If you own a profitable business, you can keep working another 5 years doing the same routine, or you could sell it and earn your 5+ years in profit in one day. What could you do with another 5+ years in your life?
💥Boom! Instantly 5+ years of your time that you would have spent working, returned back to your life. When our average age of death is 80, every year counts.
Time and location freedom are more valuable than most will understand. You can’t fully understand the value of these, until you experience them for yourself.
Consider this; Your goal isn’t just building a business. You need to start thinking of it as building a time machine. The more profitable the business, the bigger the time machine it is.
I’ve been enjoying this time travel for nearly 20 years now. I love helping others build their own time machines.
-Tony