They Got Acquired - You should know this

January 12, 2024
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Did you know we publish explainer and advice posts on They Got Acquired?

In addition to stories about deals, our reporters interview MA& experts about how founders should think about selling.

Here are a few of our best explainer posts from 2023.

💡 12 books that will help you prepare to sell your company​

These books about how to sell a business will help you navigate the acquisition process. (Updated in 2023)

💡 What is SDE? We explain seller’s discretionary income, plus why it matters for your sale​

This story includes an example of how one seller made changes in his business to increase SDE and subsequently, his company’s valuation.

💡 Strategies for minimizing taxes when you sell your business​

What can you do to reduce your tax burden when you sell your business?

Matt Camrud of Brighton Jones shares how entrepreneurs should approach financial planning ahead of your sale.

💡 How to clean up your books before selling your business​

Will a buyer be impressed with your business’s clear, concise financials, or is your accounting a disorganized mess?

Follow our step-by-step checklist to make sure your books are sale-ready.

Plus a few more posts below after this message from our sponsor...

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Flippa Insights: Unlocking the power of profit multiples

Check out the latest stats from sold businesses and see how your online business stacks up:

• Flippa’s average annual profit multiple stands at 3.03x.
• It’s a good time to sell that content business you’re holding on to: Flippa sold a six-year-old content business for a peak annual profit multiple of 5.93x.
• Service business multiples have soared to a high of 5x annual profit.
• For SaaS businesses valued at $250,000+, the average annual profit multiple is currently 3.6x.
• The top e-commerce profit multiple was 4.7x. This was a 19-year-old hair-loss prevention e-com business.

Compare the value of your online business with the latest profit multiples and insight data from Flippa.

Best advice posts from 2023 (continued)

💡 M&A lawyer shares mistakes to avoid when you sell your business​

What legal pitfalls should you watch out for when you sell?

In this conversation with M&A lawyer Andrew Ritter, we talk about when sellers should bring a lawyer into the sale process, how to think about an LOI, and more.

💡 Should you consider seller financing when you sell your business? We explain how it works​

How does seller financing work? Should you consider it when you sell your business?

You can increase your business sale price by lending your buyer funds, but beware of the pitfalls if you offer seller carry-back financing.

💡 Tips for selling a business that runs on contractors (no employees)​

Many lean, online businesses use contractors or freelancers rather than employees.

But what does this model mean for an acquisition? What do buyers think of this structure?

💡 What happens when a company sells for less money than it raised in funding? We explain​

Do founders get anything when they sell the business for little more than they raised?

Here’s what those cases typically look like for founders and investors.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​