04 Sep Built to Sell: Selling 20 Companies at 4x ARR, With Stuart Faught
Broadly speaking, there are two ways to build a company. Some entrepreneurs swing for the fences, spending decades building one big business. Others play for singles, building a series of smaller companies they can sell and repeat.
Stuart Faught has made a career of the second approach.
He has started and sold 20 software businesses, making him the number-one seller on Acquire.com. His model is deliberately small: build a simple tool for a niche of local businesses, grow it to $50K to $100K in annual recurring revenue, sell it for four to five times that, and move on to the next one.
In this episode of Built to Sell Radio, you’ll discover how to:
– Structure a payment schedule that ends within 90 days, and why the one deal Stuart stretched over two years is the one he never got paid for
– Turn consultants who already have your customers’ trust into a sales channel, using two simple criteria to qualify them
– Spot the three buyer behaviors that make Stuart walk away from a deal, even when there’s no other buyer
– Use an in-person training commitment to win a buyer over competing sellers
– Put a $55K price on a company that doesn’t have a single customer
– Invest in your brand and sales deck before listing, and why most sellers neglect the first thing buyers see
– Make yourself part of the value proposition by showing buyers you’ll be easy to work with after the sale
