They Got Acquired - Don't underestimate this

March 3, 2023
​Read on web​

Here's a common theme we've noticed amongst founders looking to sell their business:

Many look to sell because they're burned out.

Of course, you can sell when you’re burned out, and plenty of entrepreneurs do so.

But in an ideal world, if you have the luxury of planning ahead, you should sell your business before you get to that point.

Here's why:

❤️‍🔥 Selling requires energy

It's easy to underestimate the energy required to sell your business.

Yes, you have to find a good-fit buyer. But most founders say the biggest energy drain of selling comes from due diligence. While you go through that process, you also must continue to juggle business operations.

If you’re usually working at 100%, during the sale process you might need to work closer to 130% or more.

This extra work is a good incentive to put the pieces in place for your business to run without you before you sell. That’s attractive to a buyer, and it also makes the sale process easier.

❤️‍🔥 Maximizing your business value also requires energy

If you work with an M&A advisor for your sale, a good one will help you figure out how to maximize the value of your business.

The advisor might suggest, for example, that if you focus on a certain arm of your business or a certain type of customer, your sale price will increase. Or maybe you have an opportunity to trim expenses in a meaningful way to increase your profit margin, which can also pump up your sale price.

Operational improvements, however, require effort. And here’s the kicker: the ROI lags. It takes time to see the results of that effort.

Of course, you aren’t required to improve your business before selling it, and sometimes it’s not even the best use of your time. But in the ideal scenario, you have the option. If you come to the table burned out, that might not feel like a choice.

👉🏽 We outline more compelling reasons you should look to sell before you burn out in today's column:

​Why you shouldn’t wait until you burn out to sell your business ​

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Don't shut it down. Sell it instead

When Inbox Collective reached out to interview me for a piece about how to shut down your newsletter, I wanted to shout:

Don't shut it down! Sell it instead!

Of course, it's not quite that simple. Sometimes there's a good reason to abandon a project, and the personal element of some newsletters can make it tricky to pass to someone else.

But when you've put a lot of effort into growing a business, it usually makes sense to at least explore selling it.

The four exit options in this piece apply not only to newsletters, but to other businesses as well:

✉️ Exit paths to consider for your newsletter​

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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About us 👋

Our mission is to redefine startup success by showcasing companies that sell for $100K-$50M. Learn more about us or follow us on Twitter.

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