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My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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Sell a business while retaining the most valuable strategic asset for ongoing revenue

Business owners who have identified a core competency that transcends their current business model

5-10 years

What Success Looks Like

Successfully exit main business at high valuation while retaining strategic asset that generates ongoing revenue and serves multiple customers

Steps to Execute

1

Identify core competency that created competitive advantage

2

Structure core competency as separate legal entity

3

Negotiate exit deal that excludes strategic asset

4

Create licensing agreements for ongoing relationship

5

Scale retained asset to serve multiple customers

Checklist

Strategic asset legally separated from main business
Valuation methodology for retained asset established
Buyer agreements to licensing terms
New customer pipeline for retained asset identified
Operational capacity to serve multiple customers

Inputs Needed

  • Clear identification of strategic asset
  • Legal structure for asset separation
  • Negotiation leverage with buyer
  • Market demand for strategic asset as service

Outputs

  • High exit valuation for main business
  • Ongoing revenue from retained asset
  • Diversified customer base for strategic asset
  • Option to scale retained asset business

Example

“Muscle Milk sold brand and distribution for $450M but kept the flavor technology company, now licensing flavors to multiple food and beverage companies.”