How to Sell Your Business (First Call)

About this video

Dan Martell gives a five-step framework for a first call with a potential acquirer, drawing on his experience building Flowtown — where, he says, he overshared with someone from Google on his first call — and on coaching client AD from Conversio, which he notes was acquired by Campaign Monitor. Step 1: assess fit, price, and motivation — whether the buyer fits culturally, whether its valuation/deal size is in line, and whether it is genuinely motivated or just doing market research. Step 2: get them talking, using an 80/20 rule where the prospect speaks 80% of the time while you ask questions and reverse the discovery process. Step 3: prepare talk tracks in advance for questions about price, team size, and product strategy, giving enough to build confidence without giving away the farm, since they may next talk to a competitor. Step 4: role-play the tough questions with a co-founder or M&A partner so you are not blindsided into disclosing things like having only 60 days of runway. Step 5: stick to the scheduled time, announce a hard stop and a similar conversation with someone else, and avoid seeming needy. Martell claims nine companies he coached exited that year alone, and closes by pitching his Fundraising Like a Pro training, framing fundraising in three phases including pre-marketing.

Key takeaways

• Assess fit, price, and motivation on the first acquirer call
• Use 80/20: let the acquirer talk 80% of the time
• Prepare talk tracks that don’t give away the farm
• Role-play tough questions before the call
• Stick to the time and announce a hard stop

Episode details: published March 2, 2020 · 10:31 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Dan Martell’s own claims, shared for education — they are not typical or guaranteed.

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