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.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
An 18-Month Roller Coaster Leads to a Rock-Bottom Sale
The story of Tiny Devotions is a cautionary tale about the importance of getting out while you’re ahead.
Derek Sivers sold CD Baby for $22 million dollars and decided to do something interesting with the money.
4 Big Exits, 1 Smart Entrepreneur
Steve Murch’s BigOven sale is his latest in a series of successful multi-million-dollar exits. Find out how he did 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.
What To Do When Something New Attracts Your Attention
We talk a lot about how you sell a business, but the real satisfaction comes when exit and expectations match.
When Tragedy Strikes A Founder
Tom Pisello built Alinean, a consulting company which offered a set of tools to help salespeople express the value of picking their solution. The business was cruising with about half of its revenue coming from recurring licensing fees and the other half from consulting when disaster struck the Pisello’s family.
A Good Acquisition Offer Goes Horribly Wrong
Ross Hoek built Impres Engineering into a $2.5 million company and got a fair acquisition offer. Little did he know, it was too good to be true.
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.
The Snag Of Selling To Private Equity
Starting from humble beginnings, Sherry Deutschmann built LetterLogic into a $40 million juggernaut which she sold recently for more than seven times EBITDA.
