Herding Cats Towards The Exit
May 31, 2019 |
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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
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