E266: From a $5M Offer to a $70M Deal: The Hidden Secrets of Selling Your Business for Maximum Value

How2Exit: Buy, Don't Build - M&A of Small Businesses

Watch Here: https://youtu.be/JhloU4oKlDg
About the Guest:
Todd Sullivan is the co-founder of ExitWise, a platform designed to help business owners maximize the value of their exits by connecting them with the best investment bankers, M&A attorneys, and advisors in their industry. A former entrepreneur with multiple exits—including deals with Microsoft and CBS—Sullivan is on a mission to level the playing field for founders and ensure they don’t leave millions on the table when selling their businesses.
Key Takeaways:

1. Unsolicited Offers Are Often Lowball Ploys – Many business owners receive unsolicited offers that seem attractive at first glance but are often far below the company’s true value. Having the right representation can dramatically shift these offers upward.
2. Preparation Is Key – A successful exit doesn’t happen overnight. Business owners should start preparing two to three years in advance, ensuring financials, operational structures, and data rooms are in order.
3. The Right Team Makes All the Difference – Choosing industry-specific investment bankers, M&A attorneys, and advisors can increase deal success rates from under 30% to over 85%. These experts not only help navigate the process but also significantly boost valuation.
4. Understanding Buyer Strategies Is Critical – Buyers are often seasoned dealmakers with playbooks designed to pressure sellers into quick decisions, unrealistic timelines, and one-sided terms. Business owners must learn to control the process and not be rushed into mistakes.
5. Avoid Letting Ego Kill a Deal – Entrepreneurs can sabotage their own exit by overestimating their company’s worth or refusing strong offers based on emotional attachment. An objective valuation and disciplined approach are essential.
6. Earnouts and Employment Agreements Need Careful Structuring – Many entrepreneurs struggle when transitioning to employees post-sale. Structuring earnouts correctly can ensure smoother transitions and maximize financial benefits.
7. The Exit Market Is Shifting – With private equity dry powder moving into lower middle market deals, competition for quality businesses is heating up. Those with strong financials, profitability, and growth potential will command the best multiples.
8. Confidentiality in M&A Is Vital – Overexposing a deal by engaging too many buyers can damage business value and create unnecessary risks. A strategic, private approach to negotiations is far superior.

--------------------------------------------------
Contact Todd on
Linkedin: https://www.linkedin.com/in/toddfsullivan/
--------------------------------------------------
💰If you’d like additional ways to support this podcast, you can become a paid subscriber here: https://how2exit.substack.com/
►Visit Our Website: https://www.how2exit.com/
📧For Business Inquiries: [e-mail]
Don't Forget to SUBSCRIBE to the How2Exit channel and press (🔔) to join the Notification Squad and stay updated with new uploads.✨
👇🏻SUBSCRIBE HERE
https://www.youtube.com/channel/UC_ONnhwaKSTPFt2nOxKoXXQ?sub_confirmation=1
𝐖𝐚𝐧𝐭 𝐭𝐨 𝐬𝐞𝐞 𝐦𝐨𝐫𝐞 𝐜𝐨𝐧𝐭𝐞𝐧𝐭 𝐥𝐢𝐤𝐞 𝐭𝐡𝐢𝐬...?
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
👍 Like the video (it helps a ton!)
💬 Comment below to share your opinion!
🔗 Share the video with anyone you think might help :) ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
📱Stay Tuned On Our Social Media :
» Linkedin - https://www.linkedin.com/in/ronskelton/
» Twitter - https://twitter.com/ronaldskelton
» Facebook - https://www.facebook.com/How2Exit
» Newsletter - http://deeper.how2exit.com/
🎬SUGGESTED VIDEOS
Don't forget to watch 📽 Our other videos. Please check them out :
▶️Previous Episode: From ‘Throwaway Kid’ to Billion-Dollar Boardroom: Sir Darren Jacklin’s Jaw-Dropping Journey - https://youtu.be/RRnPx2U1Ljs
▶️E135: Sam Rosati On His Journey From Being A Lawyer To Becoming An Entrepreneur In The ETA Space - https://youtu.be/D2qJOidptRA
▶️E100: CEO Of Flippa Blake Hutchison Discusses Innovations In Buying And Selling Digital Assets - https://youtu.be/R1D5guQU9Z0
#How2Exit # # 💖Thanks for watching! 💖
Become a supporter of this podcast: https://www.spreaker.com/podcast/how2exit-buy-don-t-build-m-a-of-small-businesses--4859429/support.