#21 - How To Value, Sell and Buy Online Businesses

First thing you gotta do is get the numbers right. Sellers discretionary earnings net income trailing twelve months. Profit and loss adbacks. listening to business, getting under LOI, and then having it fall completely apart in due diligence because all the numbers are wrong. It's heartbreaking, it's debilitating, it's emotionally crushing, but it's reality.

people listening, they know the value of their car, their house, their condo, their retirement account, but they probably have no real accurate idea what the value of their most valuable asset is. Which is their business. So we're seeing larger, more mature businesses where the entrepreneurs are smarter, they're more educated. and the size of the businesses are much larger. You know, in 2013 when I closed 23 transactions myself, it was about$225,000 on average. In 2018, my average size was about$2 million. Five million is not enough. Ten million dollars. Hundred million dollars.

one or two people in a bedroom actually the threats to these like giant multi-billion dollar companies because you have creativity and you have nothing to lose. Add another zero to that price, buddy. Add two more zero. Person. Mm-hmm. Every week we sit down with self-made millionaires and ask them.

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