FX Design Group built the sets you see behind TV anchors and sports commentators. After 30 years of running the business, Mack McLaughlin sold FX in an all-cash deal to one of his longtime subcontractors.
Not only did he sell the business, but Mack also sold the real estate it was operating from. One common recommendation you’ll hear is that founders shouldn’t own the real estate their business operates from. The thinking is that real estate is a separate business—one that eats capital and attention that could be better used in your operating company. But Mack shares a counter perspective. He bought his building for $1 million, used it as collateral during a downturn, collected rent for years, and eventually sold it for more than $3 million.
In this episode of Built to Sell Radio, you’ll discover how to:
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Attract acquirers without formally listing your business
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Avoid the trap of selling to employees who don’t have capital
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Replace yourself without losing momentum (download The 4 Degrees of Delegation eBook)
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Use one number to forecast your cash runway
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Structure your sale to trigger capital gains treatment
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Exit cleanly, even in the middle of a personal crisis
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Leverage real estate to stay alive during a downturn
Quote of the Week
I was in the office one day a week, playing online poker. That’s how well the business was running.
Exclusive Webinar with John Warrillow
If you’re looking to make your business less reliant on you, don’t miss our free webinar happening on June 5th at 1:30 pm ET, Creating a Business That Can Thrive Without You.
You’ll discover how to step back without things falling apart—and increase the value of your company in the process.
Deals
Stack’s Bowers Galleries (SBG), one of the world’s largest rare coin and currency auction houses, has been acquired by A-Mark Precious Metals, Inc. (NASDAQ: AMRK) for $92 million, consisting of $46 million in cash and $46 million in stock.
SBG generated $536.4 million in revenue and $10.9 million in EBITDA for the fiscal year ended June 30, 2024. The acquisition price reflects an EBITDA multiple of approximately 8.4x
