Hey {{first_name}} ,
How to Sell an Unprofitable Company
Most people think you need strong profits to sell your business.
But here’s the truth: loss making companies get sold or invested in all the time, you just need a story buyers believe in.
Because buyers aren’t really buying past profits, they’re buying future ones.
Let’s break it down.
1. Know What Kind of Buyer You’re Talking To
There are two main types of buyers for unprofitable businesses:
Strategic buyers: They want what you’ve built: brand, customers, tech, or market position. They can look past lack of profits if you give them leverage. Think: “What could this be worth inside their machine?”
Financial buyers: These are investors who think they can fix you. They care about why you’re unprofitable and whether the cause is fixable (overheads, pricing, leadership, structure).
If you know which you’re talking to, you can pitch the right narrative.
2. Reframe “Unprofitable” as “Pre-scale”
No one wants to buy a losing business, but everyone loves a business about to break out.
You’re not “unprofitable”. You’re investing in growth, increasing market share, or refining unit economics etc.
That’s not spin; that’s how almost every tech, SaaS, and franchise deal is sold.
Buyers want confidence that your losses are intentional and containable.
If you can show:
Unit profitability (you make money per customer, just not enough volume yet)
Declining CAC or overhead as revenue grows
A clear path to breakeven
…then you’ve reframed the problem from “losses” to “timing.”
3. Identify and Package Your Assets
When a buyer looks at an unprofitable business, they’re asking:
“What am I actually buying?”
List and highlight your assets beyond profit:
Customer list or brand loyalty
Unique process, license, or distribution deal
Data, IP, or trade secrets
Strong team or reputation in a niche
Contracts, supplier relationships, or social following
Bundle these into a “value asset summary”, a short pack showing what makes your business valuable beyond the P&L.
4. Show a Realistic Turnaround Path
Even if your financials are bad, a clear operational plan can close the gap.
Give the buyer a believable “90-day turnaround” or “12-month breakeven” roadmap:
Cut: Identify the 20% of costs that add 0% to customer value.
Focus: Drop the least profitable products or segments.
Grow: Show quick wins where profit flips fast (e.g., upsells, repricing, automation).
The key is not to hide the problem — it’s to show you understand it better than anyone else.
We can help you with this, here
5. Use the Right Multiple
Stop thinking in EBITDA.
Unprofitable companies are usually sold on revenue multiples, user base, or asset value.
For example:
Agencies or SaaS often sell for 1–2× revenue, even without profit.
Ecommerce with brand equity might go for 0.5–1× revenue.
Specialized IP or licenses can fetch 3–5× the cost of development.
Don’t let a buyer tell you “it’s not worth much because it’s not profitable.”
That’s not how most deals are valued anymore, especially when the buyer can strip costs, merge systems, and unlock synergies you couldn’t alone.
6. Tell the Right Story
The best founders don’t sell data. They sell belief.
Your buyer must walk away thinking:
“This founder already did the hard part. I just need to capitalize on it.”
That’s the art of the exit: turning current weakness into future potential.
Final Thought:
If your business is unprofitable, don’t hide it.
Reframe it, document your assets, and pitch the buyer on the delta the difference between where you are and where they could take it.
That gap is their profit (and your payday)
Here’s to your success
Unlocking Wealth Weekly
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