How To Avoid The Hodgepodge Discount
May 24, 2019 |
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:
The Traffic & Conversion Summit attracts 7,000 attendees and keynote speakers like Sir Richard Branson. So why would the creator want to sell it?
Nobody likes paying for a hundred TV channels when all you want is a few, which is why so many people are dropping cable in favor of a subscription to only the channels they want.
Similarly, no investor wants to buy a business with a hodgepodge of product lines if they can’t figure out how to value and monetize all of what you’ve created.
Which is how Ryan Deiss got himself into a pickle.
Deiss is the co-foudner of Digital Marketer, a growing e-learning platform for marketers with – up until recently – a thriving annual conference that draws 7,000 marketers and speakers like Sir Richard Branson.
When Deiss went to raise money for Digital Marketer, would-be investors didn’t know how to categorize them. Some investors liked Deiss’ e-learning company but didn’t want to be in the events business. Others liked events and didn’t value e-learning as much. That’s when Deiss made a drastic decision that would end up paying off handsomely.
In this episode, you’ll learn:
- How more product and service lines could reduce your market value
- How to identify if you have a division worth selling off
- What is takes to get Richardson Branson to keynote your event
- How to negotiate your Non-Compete
- The one thing you should never do when agreeing to an earn out
- The importance of knowing your number before you start negotiating with an acquirer
- How to fly business class on your acquirer’s dime
- How to avoid the biggest regret Deiss wishes he had avoided
Deiss and his business partners initially struggled to find an investor or buyer for their business because they were offering too many service and product offerings. By carving out the Traffic & Conversion Summit as its own entity, they were able to streamline what they were offering to an interested buyer. We’ll figure out what one thing investors will value most about your company in module 6 of The Value Builder System™ — Get started for free right now by completing Module 1.
Our guest
Best-selling author, founder of multiple companies collectively employing hundreds around the globe, and one of the most dynamic speakers on marketing in the United States today. Ryan is the founder and CEO of DigitalMarketer.com and Founder and Managing Partner of RivalBrands.com and plattr.com. Ryan is the creator of the “Customer Value Optimization” methodology and have introduced and popularized many of the digital selling strategies that modern companies now take for granted.Related to this topic
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.
When To Hire A President To Run Things
Want to bring in a President to run your company day-to-day? Here’s how to get it right.
The first time David Phelps sold his dental practice, he ended up in a legal battle that cost him more than $100,000.
John Ratliff started Appletree Answers in a spare bedroom of his house in 1995 and by 2012 had grown it to 650 employees and 24 locations when he decided it was time to sell.
Are you stacking a few Benjamins?
, a personal finance podcast. Sehy’s journey was unusual: he started as a financial advisor, building a firm with $65MM in assets under management until he received a letter prompting him to sell.
Nathaniel Broughton grew Spread Effect to a $4 million company in only four years — so why would he sell for a rock bottom multiple?
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
How One Key Hire Helped Dimple Up Their Value By 500% in 2.5 Years
Teetering on the brink of liquidation, a key hire at Dimple led to a dramatic turnaround that resulted in a $13.4M exit.
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.
Inside the Mind of a Private Equity Investor
Frank Cottle led an investor group to buy Hi-Mark Software for 10 times EBITDA. Cottle then sold a chunk for 15 times and ultimately sold his last tranche of equity for more than 16 times EBITDA to Lufthansa.
Lee Gregory built Sir Lines-A-Lot, a company that paints lines on highways, to 40 employees. It was blue-collar work, so when Gregory learned his company could be worth north of eight figures, he decided it was time to sell. During this interview, Gregory drops dozens of knowledge bombs for aspiring value builders.
Lessons From a A £20 Million Exit
Have you ever stayed in a fancy hotel and wondered how much they pay Aveda for those little bottles of shampoo? Turns out, there is a company called Pacific Direct that acts as a middleman between the hotel chain and the company supplying the shampoo.