The Exit: The Final Harvest

THE BRUTAL REALITY: YOU DON'T OWN IT UNTIL YOU SELL IT

A company is a tool for wealth creation. If you can't sell it, it's just a high-status prison.

The Conflict: You are emotionally attached to your brand.

The Truth: To a buyer, you are just an EBITDA multiple. They don't care about your "culture" unless it makes them more money.

The Fix: Build your company from Day 1 to be "Acquirable." Clean books, documented processes, and a team that doesn't need you.

1. VALUATION MULTIPLES

Businesses are valued on a multiple of Profit (EBITDA) or Revenue. SaaS gets revenue multiples (5x-15x). Services get profit multiples (3x-6x). Know your category and optimize the specific number that drives your valuation.

2. THE DUE DILIGENCE BATTLE

When you sell, the buyer will send an army of accountants to find reasons to lower the price. If your contracts are missing or your taxes are messy, you will lose millions in the final hour.

SMART WORDS

EBITDA

The "Standard Measure." Earnings Before Interest, Taxes, Depreciation, and Amortization. The baseline for most valuations.

VALUATION MULTIPLE

The "Multiplier." The number applied to your earnings to determine the total price of the company.

ASSET VS STOCK DEAL

In an Asset deal, they buy your "stuff." In a Stock deal, they buy the whole entity. The tax implications are massive.

TACTICAL DIRECTIVES

1. Identify 3 Acquirers: List 3 companies that would benefit from owning you. What is the ONE feature they want most?

2. The Cleanse: Hire a professional to do a "Mini-Audit" of your books. Fix every red flag today.

3. The CEO Exit: Automate your own role so the business runs perfectly without you for 30 days. This adds 20% to your valuation.