Motivated Seller Screen
Target owners already predisposed to make a transition
- Difficulty
- Easy
- Time to result
- ~weeks to results
- Steps
- 6
- Confidence
- 98%
The Motivated Seller Screen separates persuading from finding. Instead of trying to convince an excited, growing founder to exit, look for an owner whose life and business are already aligned with a transition. Sanchez's archetype is over fifty, has operated the company for at least five years, sees only modest annual growth, works in a commoditized field, and lacks a major expansion plan. Motivation often becomes acute around the five Ds she cites: death, divorce, disease, unhappiness, and disaster. These are conversation signals, not permission to exploit vulnerability. Confirm the owner's objectives and timing, then structure a fair transition. Seller motivation improves deal feasibility, but the buyer must still verify economics, operations, and price independently.
Origin
Sanchez contrasts young, enthusiastic founders with mature owners of steady businesses and uses the five Ds to identify likely transition moments.
Core principles
- 01Find readiness instead of manufacturing it
- 02Mature, slow-growth businesses are more likely succession candidates
- 03Owner circumstances often drive timing
- 04A motivated seller still requires full business due diligence
How to run it
- 1
Define the likely archetype
Focus sourcing on mature owners of established, modest-growth businesses rather than exciting young founders.
Pro tip Commoditized local services often fit the pattern.
- 2
Check ownership tenure
Look for at least five years in the business and signs that the owner has carried substantial operating responsibility.
Watch out Age alone does not indicate a desire to sell.
- 3
Assess growth appetite
Determine whether the owner still has an ambitious expansion plan or is maintaining the company without pursuing major growth.
- 4
Listen for transition events
Ask open questions about future plans and listen for the five Ds or another genuine reason for change.
Pro tip Let the seller describe the motivation rather than assigning one to them.
Watch out Do not exploit distress or manufacture urgency.
- 5
Confirm readiness
Verify that the owner is willing to discuss timing, price, handover, and an appropriate role after the sale.
Watch out Interest in a conversation is not agreement to a transaction.
- 6
Underwrite separately
Evaluate the company's quality and economics without treating seller motivation as evidence of value.
Watch out A highly motivated seller can still own a bad business.
In the wild
A roofing-company owner in his sixties has run the company for twenty years, works long hours, and has no child who wants to take over. A buyer opens a succession conversation, learns that the owner wants a gradual retirement, and proposes a transition rather than trying to create urgency.
→ The discussion begins from an existing owner need and can move toward mutually useful terms.
Common mistakes
Selling the owner on selling
Trying to create a desire to exit wastes effort and encourages pressure instead of qualification.
Mistaking motivation for value
A seller's urgency does not validate the company's earnings, assets, or asking price.
Is it for you?
Best for
Acquisition entrepreneurs sourcing established small businesses directly from owners.
Not ideal for
Buyers who use personal hardship to pressure sellers or assume motivation makes a weak business attractive.
From the transcript
“You only find people who are already predisposed to want what you're selling. You find people who are ready to sell. You don't”
“They've run the business for five years or more. The business has very marginal growth, three to 5% growth a year”
“death, divorce, disease, uh unhappiness”
From the episode
Codie Sanchez: How to Get Rich Buying a Business No One Wants
Codie Sanchez