ExitAdvisor Blog

Getting Acquired vs Selling Your Business

In 2012, Ryan Coon started Rentalutions, a platform to help landlords manage and communicate with their tenants more effectively. 

The business showed steady growth, but Coon wasn’t satisfied. 

Five years in, Coon rebranded the company to Avail and focused his marketing to target DIY landlords with under ten rental units to manage. The changes proved successful as Coon grew the business to around $7 million in revenue before selling to Realtor.com in 2020 for approximately five times revenue.

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Selling Price Must Be Justified & Competitive!

Selling Price of Your Business

Business owners oftentimes want more money for their companies than buyers are willing to pay. 

Owners must realize that there are many factors that make a business sellable, but cash flow is still the most critical issue. They must understand the elements of cash flow and how it affects the price.

It can be very helpful to work with a business broker or mergers & acquisitions advisor to begin the planning process to be able to put the business on the market for top dollar when the time comes …

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2 of the Best Ways to Make Your Company Special

Specializing in Product or Service

Specializing in one product or service allows you to focus on delivering that thing better than everyone else. It enables you to hire (or train) specialists in your field, improving the quality of your work, which leads to happier customers. And satisfied customers buy again and refer their friends.

That’s why specialists often grow faster even while they are spending less on marketing, leading to better profit margins and, ultimately, a more valuable company. Specializing in a specific produ…

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Is the business built for the future?


Industry awareness

Changes in the market and technology are moving so fast these days that many business owners are having trouble keeping up.

If the business doesn't project a strong future, it obviously will not sell for top value or maybe won't have any value at all. 

Business owners must constantly be aware of what is happening in their industry and their own markets to see what steps they must take to ensure the strength and value of their company when they are ready to sell. 

Thinking of selling your …

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Up In Smoke

Built to Sell Podcast

In 2015, Lorenzo de Plano co-founded Solace Technologies, one of the first vape manufacturers in the United States. The goal of the business was to create a discreet vape pen that customers could use as an alternative to smoking cigarettes.

The business boomed to revenue of more than one million dollars a month, but a looming threat had de Plano eyeing an exit.  So, when a $15 million offer came in, he bit. In this episode of the Built to Sell Podcast, you’ll learn how to:

  • Bootstrap to a sev…

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One Change That Can (Instantly) Add Value to Your Business

One Change that will add value to your business

 

If you’re trying to figure out what your business might be worth, it’s helpful to consider what acquirers are paying for companies like yours these days. 

A little internet research will probably reveal that a business like yours trades for a multiple of your pre-tax profit, which is Sellers Discretionary Earnings (SDE) for a small business and Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA) for a slightly larger business. 

Obsessing Over Your Multiple 

This multip…

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One Bold Decision That Led to a 20X Growth in Revenue

Built to Sell Podcast

In 2009, Raman Sehgal started a small marketing company called Ramarketing. In 2015, frustrated with the company’s progress, Sehgal decided to analyze his business. 

That’s when he discovered something interesting. 

Ramarketing’s most valuable customers (low-maintenance, sticky, high gross margin, etc.) were in the pharmaceutical industry. Sehgal immediately pivoted the company to solely serve clients in the pharmaceutical supply chain. 

Focusing on big pharma worked. Ramarketing grew from $5…

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Selling a business can be an emotional rollercoaster!

Selling a business can drive people crazy!

There are many emotional issues that can make the process of selling a business very stressful.

The negotiations over the price is usually the big one, but there are many others.

Sellers are usually very concerned about what will happen to their employees.

Then there is the whole idea of leaving the company and moving to a new chapter in their life.

Sellers must know that it is common for the process to be filled with emotional ups and downs and must be prepared to deal with all those issu…

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The Unicorn Exit

Unicorn Exit

In 2001, Haroon Mokhtarzada and his brothers started Webs.com, which allowed anyone to build a professional website. Eager to grow the company, they decided to raise money from a venture capital firm – a decision Mokhtarzada would later regret.

They ultimately grew Webs.com to over 50 million users and sold it in 2011 to Vistaprint for over 10x revenue, totaling $117.5 million.

Hungry to start another company and learn from their mistakes, Haroon and his brothers began Truebill in 2015. The…

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Why does it take so long to sell a business?

Why does it take so long to sell a business?

Why does it take so long to sell a business?

Business Owners must be aware that the process of selling a business is complex and can take time.

Each business is unique and there are many steps along the way --  particularly if the deal includes outside lender financing. If it shows strong cash flow, it usually will sell quicker.  And when the financials are clean and straight forward, it makes it much easier.

Business owners must prepare their business for sale so it looks attractive to buy…

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