E34 Knowing Price and Value from a Buyer and Seller Perspective

Business owners tend to overvalue their companies when it’s time to sell them, which can be a problem when a buyer is interested and both parties collide on how much the business really costs. To avoid this conflict, you must first see your business from a buyer’s perspective. It all starts with knowing the difference between your company’s value and price.

 

In this episode, I discuss the critical differences between value and price in the context of selling a business. I explain the importance of knowing your buyer’s perspective before, during, and after the sale. I share some of the questions buyers ask when they’re interested in your company. I also describe why SaaS companies aren’t valued for their profitability.

 

“A seller and buyer have a certain view on the value, and they don’t quite align.” – Adam Rundle

This week on the Expensive Advice Podcast:

The similarities and differences between price and value

How to use price and value when selling a company

Questions to think about when buying something

Why SaaS companies are valued on revenue as opposed to profitability

What a seller is actually selling a buyer

 

Turning Boring Money into FUN Money

Thanks for tuning into this week’s episode of Expensive Advice. If you enjoyed this episode, please subscribe and leave a review wherever you get your podcasts.

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 Deezer

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