Everything You Should Learn If You Want To Sell Your Business

⏱️ TIMESTAMPS:

0:00 – The #1 Mistake Founders Make When Selling Their Business

1:25 – What Catches Founders Out in an Exit?

2:45 – The Company Valuation Formula: EBITDA x Multiple

4:10 – Levers You Can Pull to Increase Your Multiple

6:30 – How to Avoid Earn-Out Hell

8:15 – Navigating Due Diligence & Achieving a Clean Exit

9:00 – Your Next Steps to a Successful Business Sale

THE KEY INSIGHTS:

COMPANY VALUATION FORMULA

Your business value = EBITDA x Multiple. Most founders focus on EBITDA (profit ), but the real leverage is in the multiple. A business doing £2m EBITDA at a 3x multiple is worth £6m. Same business at a 6x multiple is worth £12m. Double the value, same profit.

LEVERS TO INCREASE YOUR MULTIPLE

• Recurring revenue (predictable cash flow)
• Low customer concentration (not dependent on a few big clients)
• Strong management team (business runs without you)
• Clean financials (no surprises in due diligence)
• Growth trajectory (buyers pay for future potential)

AVOIDING EARN-OUT HELL

Two-thirds of founders never see all their money because they agree to earn-outs. You’re working for someone else, in a business you no longer control, trying to hit targets that may be impossible. Negotiate for a clean exit. Take less money upfront if you have to, but get out clean.

DUE DILIGENCE

This is where deals fall apart. Buyers will find everything. Clean up your financials, contracts, and operations before you go to market. Every issue they find reduces your valuation or increases the earn-out.

📅 Thinking about an exit in the next few years? Book a 45-minute exit planning call and let’s talk about how to maximise your value and avoid the common pitfalls.

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