Summary

In this episode of Million Dollar Moment, business broker Alex Nghiem shares a straightforward guide for entrepreneurs looking to sell their businesses for seven, eight, or even nine figures. He explains how his two companies, Exitable Agency and ExitMySaaS, help agency owners and SaaS founders navigate the selling process. By keeping the two ventures separate, Alex is able to better meet the unique needs of each type of business. He also touches on how branding and positioning can have a big impact on the final sale price.

Alex shares practical advice that every entrepreneur should know before selling their business. He talks about the importance of reducing "perceived risk," which means making sure the business doesn’t rely too heavily on one client, one revenue stream, or one key person (like the founder). Buyers aren't just looking at numbers — they want to feel confident that the business will stay strong after the sale. The more stable and predictable things look, the higher the price tag.

The episode also breaks down the process of selling a business, from signing a Letter of Intent (LOI) to finalizing the Purchase Agreement. Alex explains deal terms like "cash at close," "earn-outs," and "equity rollovers," which can lead to a second payday for founders. His simple, clear explanations make it easier to understand what can feel like a confusing process, giving entrepreneurs the tools they need to make their own million-dollar exit.

Takeaways

1. Reduce Risk to Boost Value
   Buyers want businesses that feel stable and low-risk. If your company relies too much on one client, one revenue stream, or a single key person (like the founder), it’s seen as risky. Spread out your revenue sources, build systems that don’t rely on you, and create stability to increase your business’s value.
2. Brand Positioning Matters
   The way you present your business can impact its perceived value. Alex highlights how separating his agency-focused brand (Exitable Agency) from his SaaS-focused brand (ExitMySaaS) made his services more appealing to buyers in each space. For entrepreneurs, this means it may be smart to position your brand in a way that speaks directly to potential acquirers.
3. Know the Types of Buyers
   Not all buyers are the same. Strategic buyers see your business as a way to grow their own operations and may be willing to pay more. Financial buyers, on the other hand, focus on cash flow and return on investment, so they tend to offer lower multiples. Knowing who you’re selling to can help you position your business for a higher sale price.
4. Understand the Sale Process
   Selling a business isn’t just about getting a big check. There’s a process involved, starting with a Letter of Intent (LOI), followed by due diligence, and ending with a Purchase Agreement. Knowing what to expect at each stage — and being ready for terms like "earn-outs," "cash at close," and "equity rollovers" — will help you get the most out of your sale.
5. Get Ready for the Second Payday
   In some deals, you’ll hear about something called an "equity rollover." This means part of your sale payout is converted into ownership in the company that’s buying you. While it’s not guaranteed money, it gives you a shot at a second payday when the buyer sells or grows that larger business. If you’re open to this option, be sure to do your own research on the company you’ll be joining.