James Garvey and his partner grew Objective Loyalty from a standing start in 2005 to $2.5 million in EBITDA before they decided to sell their email marketing platform. Garvey’s investment banker spent six months shopping the deal without a single offer. Then Garvey decided to switch tactics and approach the strategic partners who already knew… Read more »
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The Surprising Truth About Who Will Buy Your Company
In 1999, Andrew Weinreich sold Six Degrees, a social networking site based on the same idea that sparked the likes of LinkedIn and Facebook, for $125 million. In the following years, he went on to sell three other companies including one to IBM and another to Match.com. Most founders are lucky to have one successful… Read more »
Did Microsoft Overpay For LinkedIn?
Microsoft’s recent $26.2 billion acquisition of LinkedIn provides an illustrative example of a strategic acquisition – the type of sale that usually garners the most gain for the acquired company’s shareholders. You may be wondering what a billion-dollar acquisition has to do with your business, but the very same reasons a strategic acquirer buys a… Read more »
Have You Discovered Your Recurring Revenue Model?
When it comes to the value of your business, what happened in the past is much less important than what is likely to happen in the future. One of the most important ways you can shape the future of your business is to create some recurring revenue. Recurring revenue comes from those magical sales you… Read more »
Multiple of What?
Dennis Hart sold his advertising agency, Apex Media, for 7.1 times EBITDA. Selling for 7X sounds like a great exit but it disguises the complexity of the negotiations. Hart felt like he knew precisely how much EBITDA he generated until the buyer started questioning his math, adding back extra expenses, and driving down his EBITDA…. Read more »
What is YOUR Number?
How much would someone have to pay you to buy your business today? That’s the question Kris Jones was asked when billionaire Michael Rubin approached him about selling. Jones’ answer to Rubin’s question may surprise you. Listen now to hear how he handled it. ________________________________________ Find out how you score on the eight factors that… Read more »
New Research Into the Value of Your Business Just Released
We’ve recently analyzed the latest data from users of The Value Builder System™ and the findings present an interesting snapshot of the current value of privately held businesses. Below are some of the highlights: The Business Liquidity Index (BLI) has dropped to its lowest point on record Each quarter, we measure the proportion of business… Read more »
$250K to $180M – Built to Sell Radio
Aaron Houghton sold iContact in 2012 for $180 million. The first round of growth was financed by something called convertible debt, which Houghton recommends to any entrepreneur for its simplicity. To hear how Houghton parlayed an initial investment of $250,000 into a $180 million exit—listen here. In the last five minutes of this episode, Houghton… Read more »
You-Proofing Your Business
Making your business less dependent on you has a number of benefits, including: you can scale your company more quickly if you’re not acting as a bottleneck, you get more time to enjoy life outside of your business, and a business less dependent on its owner is much more valuable to an acquirer. Pulling yourself… Read more »
Tips on Avoiding Dealbreakers
One of the most important steps is to hire the right advisors for your team. This begins with the right professional business broker/M&A specialist. An experienced attorney should also be added to the team. The right one is an attorney who has been through the business sales process many times – one who is a… Read more »
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