Most experts who start a practice or studio end up trapped by their own success. The schedule is packed, the waitlist is long, but every dollar still depends on them showing up.
In this week’s episode of Built to Sell Radio, John talks to a physical therapist who turned a fully booked, owner-dependent practice into a boutique fitness business with recurring revenue, a second-in-command, and a clean exit on her terms. After a first deal collapsed on closing day thanks to a last-minute bank clause, she went back to market with three non-negotiables and still got a seven-figure outcome.
In this episode, you’ll learn how to:
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Turn hands-on expertise into membership-based recurring revenue
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Replace yourself as the top biller without blowing up your revenue
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Evolve from being a ‘technician’ to running a business
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Hire a six-figure second-in-command when it feels like you cannot afford it
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Clean up “lifestyle” books so an acquirer believes your earnings
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Push back when a bank or buyer slips in deal-killing terms at the last minute
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Structure a deal with no earn-out, minimal rolled equity, and a clean break after closing
If you are an expert who feels like the product and you are wondering how to sell without signing up for years of earn-out handcuffs, this Exit Story will give you a different way to think about deal structure.
Quote of the Week
I had post-it notes in my office that just said, ‘Take the high road, keep the long view.’ And I just kept saying that to myself over and over when I was ready to like rage-quit the deal.
Deals
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Greenray Turbine Solutions, a U.K.-based company that helps keep large industrial gas turbines running smoothly by providing replacement parts, repairs, and maintenance services, has been acquired by Flowserve Corporation (NYSE: FLS), a global provider of flow control products and services. Flowserve paid approximately $72 million in cash for the business, which generates about $25 million in annual revenue, valuing Greenray at roughly 2.9x revenue.
