Getting A Second Bite Of The Apple

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.

 

Check out our full M&A Glossary

About 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.