06 Jul Built to Sell Radio: How One Founder Moved Her Multiple From 2 to 8 Times EBITDA
Dr. Kristin Kahle helps businesses pick a benefits program for their employees.
She started three insurance agencies and the first two were service businesses that sold for a modest 1.5-2 times EBITDA.
With her third business, Kahle wanted to attract a higher multiple, so she decided to transform it into a technology company. Kahle built Navigate HCR up to more than 40 employees before she decided to sell. She got three offers and ended up agreeing to be acquired for around 8 x EBITDA plus a five-year contract that guarantees her employment.
Here’s what you’ll learn from Kahle’s story:
- Why five years may be the ideal time to own a business.
- The $300,000 mistake Kahle made in trying to transition a service company into a technology business.
- How to massage your books to jack up your EBITDA and maximize the value you take from your sale.
- Why having something propriety nobody else offers matters to both your customers and potential acquirers.
- The value of long-term contracts.
- How to start an acquisition conversation with an acquirer through the person responsible for partnerships.
- A unique way to carve out time to work on your M&A deal.
- Why potential acquirers asking you for less information should be a red flag.
