Herding Cats Towards The Exit
May 31, 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:
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.
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
From Food Stamps To A Seven-figure Exit
While Michael Pedone survived off of food stamps as a kid, he dreamed of living a lifestyle where money wasn’t scarce. Fast-forward a few decades, and Pedone sold his first company for $1.2MM.
Usually a 9-figure exit takes more than a year to complete but when Blackberry was behind schedule on it’s tablet launch, they saw Hampus Jakobsson’s business as a saviour. This led Blackberry to a $150M acquisition in less than six weeks.
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.
From Nothing to $25 Million in 12 Months
SnapSaves was created by Buytopia, which has a deal-of-the-day business model similar to Groupon. Started by Michele Romanow and her partners in Buytopia, the idea was to let shoppers snap a picture of their grocery receipt using the app.
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.
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.
Finding An Investor Vs. An Acquirer
Finding an acquirer for your business feels a lot like searching for an investor, but as Moritz Plassnig found out, there is one crucial difference.
Derek Sivers sold CD Baby for $22 million dollars and decided to do something interesting with the money.
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?
How To Make Peace With Your Decision To Sell
When Scott Raymond started buying real estate, he looked for a property management company to maintain his buildings. He couldn’t find anyone to care as much as he did, so Raymond decided to start his own property management business.
Tips, Hacks And Countermeasures For Negotiating With A Giant
If you’re working from home amid the COVID-19 pandemic, you’ve probably received a few packages from Amazon. As more people order essentials to deal with “shelter at home” restrictions, Amazon has seen a sudden spike in activity, which is causing them to hire more than 100,000 fulfillment center workers.
How To Find A $100 Million Idea
Dr. David Bach is a Harvard-trained scientist, physician, and serial entrepreneur.