Brandon Wade sold propane. Not software, not a brand, not a patent. Propane, delivered by truck to tanks in the yards of farmers and homeowners in southern Illinois who couldn’t get natural gas. When a buyer came sniffing in 2015, they offered three and a half times EBITDA, which Brandon describes as close to insulting. The private equity firms that followed settled around five, which is what the industry thinks a propane distributor is worth.
In June 2022, Brandon sold to GrowMark, a network of farm co-ops, for more than 9 times EBITDA. That month, the publicly traded propane companies were changing hands at about 9.8 times. A 7,000-customer family business got a public-company multiple.
He joins John Warrillow on the latest episode of Built to Sell Radio. Listen and you’ll learn how to:
- Build a business where the customer physically can’t switch to a competitor without calling you first
- Get buyers to value you on your assets and volume rather than a multiple of profit
- Turn a seasonal business into a year-round one without laying anyone off
- Tie frontline pay to output so your best people out-produce the industry three to one
- Sell to the buyer who gets the most out of owning you, not the one with the tidiest spreadsheet
- Trade a bigger headline number for a bigger after-tax number
- Avoid the “mental contracts” that form when family members work for you without equity
Brandon also talks about the part of selling a family business that nobody puts in the press release: his dad grieving for two years, the employee who turned down another job because he believed in the plan, and the sisters who didn’t share in the windfall.
Watch the full episode below.
Quote of the Week
The deal’s not done until the wire hits the bank. I had to keep the energy and the focus, because this deal could still blow up in my face.
Brandon Wade on running the business flat out through due diligence.
Curious what your business might be worth? We can help you get a snapshot Let’s take a look.
Deals
- SunPro, a Florida-based manufacturer of motorized screens, retractable awnings, and sun protection products, was acquired by Hunter Douglas, a global manufacturer of window coverings, at a valuation of approximately 9x EBITDA. SunPro owner Bob Falahee turned to Axial’s Advisor Finder Program to connect with six pre-vetted investment banks before engaging Chicago-based Peakstone Group to advise on the sale. The process generated 290 signed NDAs and 60 indications of interest ranging from $40M to $110M. The transaction included 100% of SunPro and 70% of its retail business, Sun Protection of Florida.
This deal was brought to you by Axial.
