"Xiao I wish to sell my business any potential buyers?"
How often there are people in the network or on Linkedin reached out to me Saying
Hey Xiao You have good network of investors, Locals SEA, China investors.I wish to sell my gym
Few scenarios below
TRUE STORIES~~~
✔️Scenario 1 with "Wanna be sellers"
I said "How much you wish to sell?"
Wanna be seller: "Well it is really negotiable depends on how sincere the buyer is?"
(My internal dialogue would be, OK, without telling people exactly what is the price, you wish to know who is sincere or not? This guy is dreaming and unprepared, he/she should keep this business to yourself forever)
✔️Scenario 2- "Day Dream Sellers"
I said "How much you wish to sell?"
Day dream seller: "Well, let's say 1Million"
I said "That is how times of your EBITA?"
Day dream seller:" about 10-12 times."
(Internal dialogue to myself would be, alright this is a very traditional business nothing tech related whatsoever, you want 10 times.)
I said: "So basically after taking over your business, the buyer would need 10-12 years to just break even anything further then its his/her earning correct?
Day dream seller said: "Yeaaaah about that!"
(Internal dialogue, alright go ahead , wait long long lah, let's reconnect 3 years later when you are REALLY fed up with running this business, and you have some proper reality checks. then we talk or NOT maybe)
✔️Scenario 3 - "Business is my BABY, and it is the most unique business on the planet ever seller"
I said" How much you wish to sell?"
Business is my baby seller: " Ohhh, this is my baby, I wish to sell XX times of my ebita. "
I said "Sure any general P/L for the last 2-3 years of this business to share with me or potential buyers?
Business is my baby seller: "My business is the most unique business in the world So on that, must be a NDA signed before proceeding."
(Internal dialogue, we all know NDA is not THAT enforceable in Singapore afterall And your business is NOT THAT unique like what you imagined in your fantacy world, you copied it from someone else too. it is impossible you are the first Oppenheimer I can guarantee you that for sure.And since the business is so BABY to you, keep it !!Period!)