Have You Thought About Selling Your Business?
About this episode
When you’re focused on getting through this week or this month, selling your business can feel a lifetime away. But when the day comes, buyers will want years of clean numbers: revenue, margins, owner pay, assets and EBITDA. If your net profit is only 3%, it could cost you millions.
In this episode, Kerry asks home service owners to think about their end game now. She explains what buyers look at, why you need to start preparing years in advance, and how knowing your numbers today shapes the payout you’ll get tomorrow.
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Key takeaways from this episode
- Start planning your exit years before you want to sell, not months.
- Buyers will look at your revenue, gross and net margins, owner pay, assets and EBITDA.
- A low net profit margin, like 3%, can make your business hard to sell.
- Know what you want from a sale, and what your business needs to look like to get it.
- Check whether your profit is growing, not just your revenue.
Show notes
Remember why you started
Kerry reflects on the dreams most owners start with: being your own boss, financial freedom and freedom of time. For many, the reality is long hours, unexpected expenses and stress. Thinking about your exit can be a powerful motivator to keep going.
What buyers look at
When you sell, buyers will want to see your revenue over several years, gross and net profit margins, what you take home, how many employees generate that revenue, your assets and depreciation, and your EBITDA (earnings before interest, taxes, depreciation and amortization).
Why you need to start now
Waiting until the year before you sell is too late. Time moves fast, and without detailed numbers you may not realize you could be making more, paying yourself more, or plugging a cash leak.
Set your exit goal
Is it a six, seven or eight-figure sale? Kerry challenges listeners to decide on a timeframe and target, then work out where the business needs to be to get there, including whether profit is growing year on year.
Don’t get caught at 3%
Kerry warns of owners who spend a decade building a business only to find buyers want over 10% net profit and they’re at 3%. Getting professional help with your numbers now protects your future payout.