The Different Types Of Sellers
Tweet · May 30, 2024
———————————————————————
Do you agree with these types of business seller definitions? 🤔
Looking at businesses and talking with owners, I’m seeing a pattern of sellers fitting into a few different categories.
- Age range 30’s - 40’s, more in the digital space. SAAS, ecom, etc. They have energy and still want to grow.
These are newer businesses they started with the intention to exit and move to the next. Larger multiples. 5x even up to 10x.
- Age range 50’s - 60’s, slowing down but not ready to fully exit. Planning for the future and wanting their business to stay in good hands. Willing to stay on and help transition. Multiple 2-3x.
They deeply care about their employees and just want to see the business succeed after them.
- Age range 60’s +, tired, burned out, they might also have multiple businesses that they’ve operated for a long time.
They are wanting to be out of the business day 1 after sale. Lower multiple just due to the urgency to retire. Truthfully, you might even be able to buy from this owner for less.
2 and 3 you could probably work out seller financing with. 1, most likely all cash.
Depending on what you want out of the deal will depend on which option might be best.
If you want someone to stay and train you, you might want to look for #2 sellers.
If you don’t need help and you’re adding to your portfolio, you might want to look for #3.
If you are looking for more of a partner, maybe it’s #1.
Each of these options are viable, just depends on what you’re looking for.
These are super general, but some common themes i’ve been noticing.
Again, I know these are general, but what other ones am I missing here?