Getting Out Quick And Clean
July 20, 2018 |
About this episode
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Nathaniel Broughton grew Spread Effect to a $4 million company in only four years — so why would he sell for a rock bottom multiple?
Spread Effect is a San Diego-based online content creator, founded in 2010 by Nathaniel Broughton and his partners. The company writes articles on behalf of marketing agencies and distributes them to specialty websites.
By 2014, Spread Effect employed 30 staff and had $4 million dollars in revenue. Despite his rapid growth, Broughton was ready to move on to something even bigger and sold Spread Effect for less than it was probably worth.
In this episode, you’ll learn:
- How much money you leave on the table when you prioritize a quick exit over a strategic one
- How to approach a potential acquirer (without sounding desperate)
- What a CIM is and how to write your own
- The surprising impact geography had on Broughton’s deal
- How to sell a business without any hard assets
Broughton and his partners were able to scale up their business to a thriving $4 million company but struggled to see how they could easily achieve the next level of growth. Module 2 of The Value Builder System™, the Scalability Finder, is designed to help you identify hidden areas of your business that can be scaled up the fastest. Get started for free right now by completing Module 1 to find your Value Builder Score.
Check out our article on When The Price Is Right: The Art Of Timing Your Exit.
About Our Guest
Nathaniel Broughton is the co-founder of the Opt Out Life, a popular podcast and online community of people who have built a lifestyle of freedom over their time and money. Previously, he spent 17 years owning, investing, and operating businesses that all relied heavily on internet marketing, including Eligibility.com, Spread Effect, SuretyBonds.com, and the LakeRentals.com Network, which was acquired by the Weather Channel in 2007.
