Sherry Deutschmann got the money to start LetterLogic Inc. – a company that printed and mailed patient statements for hospitals – by having a yard sale. She made her first desk out of an old door.
From these humble beginnings Deutschmann built LetterLogic into a $40 million juggernaut which she recently sold for more than seven times Earnings Before Interest Taxes Depreciation and Amortization (EBITDA).
Deutschmann credits her success to the culture she built based on empathy, transparency and a juicy profit-sharing plan which is why she was so surprised when her acquirer decided to shut it down.
In this episode, you’ll discover:
- The downside of selling to a private equity group
- How to create a positive cash flow cycle using your customer’s money
- Why Deutschmann paid her profit-sharing plan monthly
- The definition of “Major in the majors” and why Deutschmann credits this philosophy for helping her sell
- How your Trailing Twelve Months (TTM) financials impact your value
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If you’re interested in improving the value of your business, take our questionnaire or contact Colonial Business Brokerage today at 443-982-7332.
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