In this episode, we're walking through a real case study on how to prepare an e-commerce business for a $10M+ exit. We break down the tax planning strategies, financial recasting, and recurring revenue plays that can double or triple your valuation.

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Timestamps

(0:00) Introduction: Positioning a $7M revenue business for a $10M+ exit

(2:00) Standard Problem: Most founders settle for 3X multiple, leaving

(5:00) Business Valuation Works: Why 3X profit multiple is incomplete

(7:00) Hidden Costs: Seller notes and payment structures dramatically reduce actual proceeds

(9:00) Ryan's $16M Sale Mistake: Walked away with only $7.2M due

(12:00) Tax Hack: Small business exemption can make a $10M exit 100% tax-free

(14:00) Strategy #1: Use trailing 12-month numbers to capture growth momentum

(18:00) Recasting books from cash to accrual

(21:00) Moving Beyond 4X: How to reach 5X, 6X, or even 7X multiples

(23:00) Building Recurring Revenue: TikTok Shop and Subscribe & Save create buyer confidence

(29:00) Reducing Founder's Risk: Systemize yourself out of the business to increase valuation

(34:00) Setting Your Terms: Walk in with your own deal terms

(36:00) Negotiation Floor: $10M cash minimum OR 6X EBITDA on a seller note

(41:00) Plan Ahead: Start optimizing your business 6-12 months before exit

(43:00) Call-to-Action: Learn more about Ryan's coaching program