18 Oct Built to Sell Radio: One Strategy Took Them From 12.5 to 16 times EBITDA
Arleen & Ted Taveras had been growing their insurance consultancy for twenty years when they received an unsolicited acquisition offer for 12.5 times EBITDA.
It was a tempting offer from an industry stalwart, but Arleen & Ted wondered if they might be leaving money on the table.
Rather than accept the offer, the couple decided to hire an advisor to shop their company in a formal sale process which garnered 27 expressions of interest, 12 of whom made a formal offer. Ultimately, Arleen & Ted agreed to a cash offer of around 16 times earnings – more than their original, unsolicited bid.
In this episode you’ll discover how to:
- Gracefully turn down unsolicited offers without dampening their interest.
- Use the unsolicited offers you get from private equity groups.
- Get employees to think like owners.
- Create a turnkey operation using video-based Standard Operating Procedures (grab our guide to SOPs here).
- Stay calm at the prospect of losing a multimillion-dollar offer.
- Calculate the right amount of your sale proceeds to share with your employees.
- Handle retained earnings building up inside your company so that you don’t lose them as part of an acquisition.
