The Art of Selling Your Business

About the Author

John Warrillow is the founder of The Value Builder System, a software platform designed to enhance the value of a company, offered through a global network of advisors. Warrillow is also the author of the best-selling book Built to Sell: Creating a Business That Can Thrive Without You, which was recognized by Fortune and Inc. as one of the best business books of 2011. This book has been translated into 12 languages. Additionally, he hosts the popular podcast Built to Sell Radio, which is ranked by Forbes as one of the world’s 10 best podcasts for business owners. His expertise in building and selling businesses has made him a trusted advisor and a sought-after speaker in the entrepreneurial community.

Main Idea

The core message of The Art of Selling Your Business is that selling a business requires a strategic approach that combines both hard rules and softer nuances. The book serves as a comprehensive guide for business owners looking to sell companies valued between $1 million and $50 million. It emphasizes the importance of packaging your business attractively, telling a compelling story, and creating a positive emotional impact on potential buyers. Warrillow provides a step-by-step playbook for navigating the complexities of the selling process, from identifying the right time to sell to building a team of professionals to support the transaction.

Table of Contents

1. Introduction
2. The Secret to a Happy Exit: The Most Important Question Most Founders Never Answer
3. The Danger of Timing Your Exit: How to Decide When to Sell
4. Building Your Negotiating Leverage
5. Fish Where They Are Biting: How to Position Your Company to Be Acquired
6. Building Your List: How to Identify a Potential Acquirer
7. The Tease: How to Attract Acquirers without Looking Desperate
8. Keeping Your Secret: How (and When) to Tell Your Employees
9. What’s Your Number? How to Calculate Your Bottom Line
10. Punching Above Your Weight In a Negotiation
11. You Set the Price, I’ll Set the Terms: How to Drive a Great Deal
12. The Art of the Nudge: How to (Gently) Squeeze an Acquirer for More
13. The Freedom Paradox: How to Get Comfortable with Your Decision to Sell

In-depth Analysis

Introduction

The introduction sets the stage by explaining the dual nature of selling a business. It's not just about the technicalities and financial aspects but also about crafting an appealing narrative and evoking the right emotions in potential buyers. Warrillow's experience and insights from his podcast, where he interviews founders about their selling experiences, form the foundation of this book.

The Secret to a Happy Exit: The Most Important Question Most Founders Never Answer

One of the crucial aspects of a successful sale is understanding why you want to sell. Warrillow differentiates between "pull factors" and "push factors." Pull factors are future opportunities and passions that draw you away from your business, while push factors are challenges or issues that make you want to leave. To ensure a satisfying exit, it's essential to focus on pull factors. Warrillow advises creating a vision board to visualize your post-sale life, keeping your motivation aligned with positive outcomes.

"The secret to avoiding a feeling of loss when you sell is to get clear about your pull factors too." - John Warrillow

• Identify activities or ventures you're excited to pursue after selling.
• Create a vision board to keep these future goals in mind.
• Regularly revisit and update your vision board as you progress through the selling process.

The Danger of Timing Your Exit: How to Decide When to Sell

Timing the sale of your business is critical but challenging. Many founders aim to sell at the peak of their business or the economic cycle. However, Warrillow warns against relying solely on economic indicators. Instead, focus on your company's internal growth and stability. Wait until your business is on a winning streak and compile detailed information (pre-diligence) to create "deal momentum." This approach ensures you have solid data to support your valuation and attract serious buyers.