Getting A Second Bite Of The Apple
February 2, 2018 |
Want to increase the value of your business by up to 71%?
Take the 13-minute survey and get your Value Builder Score
About this episode
Subscribe:
Richard Manders co-founded iAutomation and built it up to $12M before deciding it was time to recapitalize. Manders sold 75% of his company for almost 8 times EBITDA to a Private Equity Group (PEG) and held 25% interest in the company after the sale.
Manders continued working for the PEG for seven more years. Last year, the PEG sold iAutomation, and Manders got out completely.
In this episode, you’ll learn:
- How to structure a private equity sale
- What it means to get a “second bite of the apple”
- How to solve a problem once and get paid many times for the solution
- The keys to making a partnership last over 20 years
- The joys and challenges of growing a business with someone else’s money
Manders knew that if he was going to be able to receive a premium offer for his business, he needed to replace himself and get out of the “Owner’s Trap”. Curious about how you can begin this process in your own business? You’ll get all the details in Module 7 of The Value Builder System™. Get started for free right now by completing Module 1.
Our guest
Richard Manders co-founded iAutomation which became the leader in its industry, employing 160 people and generating $80M in sales. Manders played key roles in seven acquisitions, dozens of evaluations, and has a deep understanding of how to value a business, qualify it for strategic fit, and optimize and grow combined enterprises. A lifelong learner, Manders now dedicates his time and expertise to helping other CEOs and leadership teams scale their businesses through coaching.Boost the Value of Your Business
Sign up for a copy of The Subscription Economy: 9 Subscription Models Any Business Can Adopt eBook
Download Now
Related to this topic
Walking Away From an 8 Figure Exit
Josh Davis started Spirit of Women, a marketing agency selling content about women's health to hospitals. Davis built the company up to almost $10 million in annual revenue when he kicked off a process to sell it, which he hoped would garner an offer of around 7x Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).
From Technological Obsolescence to a Multi-Million Dollar Exit
From a service no one wanted anymore to a growing business and a strategic buyer, find out how AMI was rebuilt to sell.
3 Ways to Untangle Yourself from Your Business
Debbie King was running on a treadmill so familiar to service company owners. Her company, Association Analytics, helped associations make sense of their member data, and she was wasting time on proposals that often did not get accepted. Then, when King did win a project, she was creating a custom solution for every job that required her to hire senior-level staff and personally get involved in client work. The model put a cap on her business, and when she reached 20 employees, she decided it was time to get out.
How the Fine Print in an Acquisition Offer Can Leave You Penniless
Before the pandemic, fancy salad bars were popping up in major cities across the US, making the category one of the fastest-growing sectors of the restaurant industry. Despite their popularity in major cities, when Ana Chaud moved to Portland, Oregon, she was surprised to see a shortage of good salad options.
Niche Down To Jack Up Your Value
It can be tempting to expand your niche to grow your business, but the broader the market you serve, the less valuable you may be to an acquirer.
The Backstory Behind Dream Water's $34.5M Exit
David Lekach started Dream Water; a natural sleep aid bottled in a 5 oz shot similar to the famous 5-Hour Energy Drink. Lekach built Dream Water up to almost $10 million in annual revenue before selling it to Harvest One, a cannabis company, for $34.5 million in cash and Harvest One stock.
Peach New Media was launched in 2001 and sold in 2015 by Dave Will. Will had built his software company up to 40 employees when he received an offer from the private equity group Accel-KKR that he simply could not refuse.
How to Punch Above Your Weight Class With Acquirers
Peter Carlin started Logicearth to improve how companies teach their employees online. They built e-learning courses that were almost as good as being there in person. They caught the attention of a marketing agency called The Creative Engagement Group (TCEG), which had clients that needed online courses.
How To Package Your Expertise Into A Subscription
Marc-Andre Seguin launched JazzGuitarLessons.net in 2009 to share his knowledge as a guitar teacher.
From 10 Employees to 10X Revenue
Alex Bates’s company used Artificial Intelligence (AI) to predict the future, but even he couldn’t have anticipated a 10X payday when he sold his company
Exit Like a Tycoon Without Losing Your Soul
In 1995, with just $5,000 in start-up capital, Ashok Vasudevan launched Tasty Bite offering ready-to-eat Indian entrees to American consumers. Twenty-five years later, Tasty Bite is America's largest brand of prepared Indian food sold everywhere, from Walmart to Whole Foods. In 2017, Vasudevan announced he had sold the company to Mars, which has a portfolio of beloved brands including everything from Uncle Ben's to Skittles.
Raising Money? Avoid This Sleazy Investor’s Trap
Barry Hinckley founded Bullhorn with his two partners. They raised three rounds of financing and went on to sell for $135MM in 2012. Hinckley and his team raised money from family, friends, and venture capitalists and have the scars to prove it.