How I Sold My Company for $1,000,000 (And What I Learned)

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This is my first post for this newsletter, and I truly hope it helps you — especially if you're an entrepreneur navigating similar waters.

I’m sharing this story because I want to help fellow entrepreneurs who are going through the same process. When I was figuring it out, I struggled to find clear, real-world examples of how these deals actually happen. The data and stories online were pretty limited — and I wish I had something like this to guide me.

The seven-figure acquisition taught me a lot — not just about how to structure a deal, but also how to avoid common mistakes. I hope the lessons I’m about to share help you on your journey too.

In June 2024, I sold my company, Twiz, for $1,000,000. I had started it six and a half years earlier.

I owned 50% of the business, so my share came out to $500,000. After subtracting $50,000 in debt the buyer paid toward the company, I personally walked away with $450,000.

Lesson 1: It Doesn’t Have to Take Forever

Contrary to what I’d been told — that selling a company is a painfully long and complicated process — our deal closed in under 30 days.

The buyer? Someone who had been a client for years. They knew our business, respected our team, and ultimately made the process incredibly smooth.

The structure of the deal required a short transition period where my co-founder and I stayed on to ensure a smooth handoff. My co-founder opted to stay longer, which made my exit even easier.

Lesson 2: You Can DIY More Than You Think

I created our LOI (Letter of Intent) using ChatGPT (yes, really — lol). I sent it to my lawyer for review, and after a few edits, we were good to go.

Once the LOI was signed, we moved on to the sale agreement. Below is an outline of the asset purchase agreement for you to use to structure your own agreement. 

Asset Purchase Agreement Outline

Note: I’m not a lawyer. Please consult one if you’re considering selling your business.

Lesson 3: Set Up a Data Room Early

One of the most helpful things I did was set up a simple data room.

It included:

• Recordings of all my calls with the acquirer

• Key financial statements

• Legal documents

• SOPs and internal workflows

This gave the buyer confidence and made everything easier to reference. The smoother you make the process for the buyer, the more likely the deal will close.

Lesson 4: Prepare Your Team Ahead of Time

The team barely felt the transition.

I had already removed myself from day-to-day sales and operations years earlier. We had built a scalable structure with sales reps (both W2 and contractors), and most of the fulfillment happened without me.

That freed me up to explore new ideas — like launching a software product, building a community called Agency Go, and scaling a podcast called How to Scale an Agency into the top 5% of podcasts on Spotify.

Lesson 5: Price Isn't Everything — Timing Is

We originally priced the company at $1.2M, based on a third-party valuation from a company called Barney (now called Merge).

The buyer negotiated us down to $1M. At first, I hesitated. But ultimately, I accepted because I was ready to move on. I wanted to free my mind, fund my next chapter, and not feel pressure to work full-time for at least the next few years.

Also, the buyer was willing to pay my compensation almost entirely upfront whereas the higher valuation was a mix of upfront compensation and earn out. 

See this LinkedIn post I made where I go into this in detail: Click Here to Read

That’s a key insight I want to leave you with: sometimes, a slightly lower exit that closes quickly is worth more than a theoretical higher exit that drags on forever.

How the Payment Worked

Here’s how the actual payment broke down:

• $5,000 initial test payment to ensure bank routing was set up properly

• $15,000 follow-up payment within one week

• $430,000 final payment a week after that (post-vacation for the buyer)

Once all the funds cleared, we kicked off the handoff process and transitioned ownership. We wrapped things up with a company dinner at PF Chang’s. (See team photo below.)

Final Thoughts

The sale went more smoothly than I ever could’ve expected. I’m grateful to the buyer, my business partner, and our entire team.

Letting go of something you built over years is emotional. But it also creates space for what’s next.

If you’re thinking about selling your company — or even just wondering what that could look like one day — I hope this gave you a helpful inside look.

More lessons and behind-the-scenes stories to come.

— Lucas

P.S. Got questions? Feel free to HMU in my Skool community here: Join Skool for Free