Herding Cats Towards The Exit
May 31, 2019 |
About this episode
Subscribe:
If too many cooks spoil the broth, can too many owners derail a sale?
When a company has over 20 owners, how do you get everyone onboard for a sale?
The answer – for Wayne Colonna, who purchased Automatic Transmission Service Group (ATSG) – was a lot easier to bring to fruition than he imagined.
When Colonna was approached by a strategic buyer in 2018, he wasn’t looking to sell. In fact, he presumed it would be too difficult with ATSG – a subscription service company that provides technical support and training for auto repair shops – being under an Employee Stock Ownership Program (ESOP).
The ESOP gave employees ownership interest in the company – in other words, Colonna needed their buy in to close the deal. Find out how an otherwise “tough conversation” turned into a breezy exit.
In this episode, you’ll learn:
- Why the best time to sell your company is when someone is looking to buy
- How an ESOP can motivate your buyer and simplify a valuation
- How recurring revenue can be your winning ticket to an exit
ATSG ran as a stable business model for more than 30 years because it offered a specific niche service and was paid on a subscription model. This kind of Monopoly Control based on Recurring Revenue are just two of the Eight Key Drivers of Business Value explored in The Value Builder System™. Get started for free right now by completing Module 1.
About Our Guest
Wayne Colonna is Technical Director/Assistant to Plant Manager at ETE REMAN and President of ATSG (Automatic Transmission Service Group) since 2012.Related to this topic
Wisdom From Wall Street: How To Buy, Then Sell
Matt Slaine used his wisdom from Wall Street to buy the perfect company, and later sell it for a perfect price.
Walking Away From An 8 Figure Deal
Wes Winham was a co-founder and shareholder in PolicyStat, a software company that helps hospitals keep track of their Standard Operating Procedures (SOPs), including everything from dress codes to how to handle life and death procedures.
3 Strategic Reasons Big Companies Buy Small Ones
Strategic acquirers will pay more for your company — here’s how to make your business irresistible to them.
Cracking the Amazon e-Commerce Code
Sophie Howard built and sold a 7 figure Amazon e-Commerce business in less than two years. Here’s how she did it.
Influencer Marketing Pioneer Acquired By Fullscreen
Pete Borum practically invented the term “influencer marketing.” So how did Borum raise $15 million dollars and attract multiple acquisition offers in an industry that didn’t exist before he showed up?
Gorny built his first business- and lost it. He was determined not to let that happen again.
Lessons from Home Depot’s Acquisition of a $100 Million Juggernaut Blinds.com
Jay Steinfeld started selling blinds online in 1993. The e-commerce pioneer went on to build Blinds.com into a $100 million category killer before Home Depot decided enough was enough and made Steinfeld an offer he couldn’t refuse.
Why The Fine Print In Your Acquisition Offer Matters
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.
How Jennifer Aniston And Reese Witherspoon Helped Viviscal Exit For 15x EBITDA
With celebrity endorsements like Jennifer Aniston and Reese Witherspoon, Viviscal hit €50 million in revenue…so, why would the CEO want to sell it?
Think Twice Before Starting That New Division
Jim Beach sold American Computer Experience for $200 million, which sounds like a fantastic exit, but when I asked Beach if he had any regrets I was surprised by how long a list of lessons he had to share.
How Nick Gray Sold Museum Hack
Nick Gray built Museum Hack, a company that offers fun museum tours in major cities, to almost 3 million dollars in annual revenue when he had an idea.
How One Consulting Company Used The ‘Netflix Model’ To Transform
Kogentix’s product and service offerings may be complex, but their huge growth resulted in an ending that’s easy to understand—an acquisition by the biggest digital marketing agency in the world.