Most business owners spend 20 years building something. Then they sell it. Get their check and walk away.
That’s it. One shot. One payday.
But what if you could sell it twice (wait…woahhhht?)
It’s not my idea. PE folks call this the second bite of the apple (Roland Frasier teaches it well).
Here’s the idea (and some example numbers):
You own a business worth $3M. You sell 70% of it for $2.1M.
The thing about math though, is that if you just sell 70% of it, you get to keep 30%. Math is funny that way.
Now the buyer (someone who actually knows how to increase value) goes to work:
- They professionalize your operations
- They increase your EBITDA multiple
- They grow the actual profits
Three to five years later? That business is worth $6M-$9M.
Your 30%? It’s now worth $1.8M-$2.7M.
Do the math:
- You already got $2.1M (first sale)
- Your remaining piece is worth $1.8M-$2.7M (second sale)
- Total: up to $4.8M
Your leftover slice can be worth as much as what you sold.
You got paid twice. Once now. Once later.
Your broker isn’t going to help you think like this. Find someone that will instead.
Have you ever heard of this? How does it change your thinking?