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.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
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.
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 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.
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 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.
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.
Business Exit Lessons Learned After Interviewing Hundreds of Entrepreneurs
Listen now to hear the lessons Bo Burlingham has learned after interviewing hundreds of entrepreneurs regarding their business exit.
How To Package Your Expertise Into A Subscription
Marc-Andre Seguin launched JazzGuitarLessons.net in 2009 to share his knowledge as a guitar teacher.
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.
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.
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.
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.