Curious what your business is worth? Book a free 10-minute call with us here.
Pete Neubig started his entrepreneurial journey by buying $35,000 houses, eventually building a property management company that managed 1,000 homes.
After selling his business for $4.6 million, or 1.75 times revenue, Pete accepted 20% of the deal in stock in his acquirer—only to watch its value drop to 10 cents on the dollar.
In this episode, you’ll discover how to:
- Avoid the pitfalls of accepting stock as payment.
- Negotiate more cash up-front.
- Cap your downside in an earn-out.
- Create SOPs (even if you hate processes).
Quote of the Week
I learned the hard way: Don’t roll too much of your payout into stock. It’s not real money until it’s in your account.
Pete Neubig on the devastating downside of accepting stock valued at $11 only to see it drop to 10 cents before he could sell it.
Deals
- Profire Energy, Inc., which provides burner management and combustion control systems, is being acquired by CECO Environmental Corp. (Nasdaq: CECO), a company focused on industrial and environmental solutions, in an all-cash transaction valued at $125 million. Profire expects to generate over $60 million in sales for 2024, with adjusted EBITDA margins of approximately 20%. This acquisition reflects a revenue multiple of approximately 2.1 times Profire’s projected 2024 sales or approximately 10.4 times Profire’s projected 2024 EBITDA.
️ Never miss an episode of Built to Sell Radio. Subscribe here.
Was this email forwarded to you? If so, subscribe here.
