How to Sell a Business | Ep 494

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 2 February 2023

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

(This episode is a re-run. Original airdate was April 28, 2022)

Win negotiations before you even start them! Today, Alex (@AlexHormozi) talks about the steps and the process he learned from selling a business in order for you to know what to expect and what to look out for in order to get the best deal for your business.

Welcome to The Game Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll-up-your-sleeves kind of hustle with a little bit of cleverness and a lot of heart.

Timestamps:

(3:13) - My process of selling businesses

(4:28) - Phase 1: Prerequisites

(12:01) - Phase 2: Find a banker or broker

(20:09) - Let’s start the process

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Transcript

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0:00.0	Real quick guys, if you can think about how you found this podcast, somebody probably
0:03.8	tweeted it, told you about it, shared it on Instagram, or something like that.
0:07.4	The only way this grows is through word of mouth. And so I don't run ads, I don't do sponsorships,
0:12.2	I don't sell anything. My only ask is that you continue to pay it forward, do you ever show
0:16.2	you or however you found out about this podcast that you do the exact same thing. So if it was a review,
0:21.0	if it was a post, if you do that, it would mean the world to me and you'll throw some good comment
0:24.3	out there for another entrepreneur. I'm going to talk to you about how to sell a business. And if
0:28.0	you're wondering who is this dude in his mama's basements closet wearing a wife,
0:32.0	beater, have anything to do with talking about how to sell business. How does he even have the
0:35.9	right, the audacity to talk about these things. Let me first make a quick intro. I've sold eight
0:40.8	businesses. My name's Alex from as the I own acquisition.com, which is a portfolio of companies that
0:45.3	does over $100 million a year. And I have nothing to sell you. And I make these videos because I was once
0:50.0	broke and were these beaters out of necessity rather than out of choice. And was in my mama's
0:54.1	basement out of necessity rather than actually I'm not in her basement. This is a $5 million condo in
0:57.9	Vegas. But that's not the point. I just like working in places that have no windows. So I have
1:03.9	sold eight businesses over my career just to name a few of them. I sold Allen, which is a software
1:09.3	company that did 12 million in trailing 12 month sales. I cannot disclose the price that I sold to.
1:14.0	But that was the top line revenue. The NDA is actually fairly common in in sales agreements,
1:19.2	especially of an appreciable amount of money. And the reason for that is because they don't want a
1:23.6	potential new acquireer in terms of if you were to roll in other companies after they buy your
1:28.0	company to know what you got for yours because then it hurts their negotiating power. Now that being
1:32.5	said, the next two companies that I sold in 2021, I sold for $46.2 million and I was able to do that
	...

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