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December 16, 2015 |
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In this episode John Warrillow interviews serial entrepreneur, Kevin Kruse. As Kruse moved to exit Axiom, the ultimate buyer wanted to avoid competing with Kruse down the road… and that’s where the negotiations hit a giant snag.
How long will you agree to be sidelined when you sell your company?
Your “non compete” is an agreement you sign promising not to jump back into the industry you’re bailing out of. You may think the idea of starting a business similar to the one you’re in today is far fetched, but after tiring of golf and failing as an angel investor, many cashed out entrepreneurs decide to start a business just like the one they left – which is where your non compete can be a hindrance.
In this episode of Built to Sell Radio, John Warrillow interviews Kevin Kruse. Kruse is the kind of guy you just know is going to be successful. Kruse has written six books – one of which was a New York Times Bestseller – and sold several businesses before he started Axiom, a training company he built up to $14 million in sales. As Kruse moved to exit Axiom, the ultimate buyer wanted to avoid competing with Kruse down the road… and that’s where the negotiations hit a giant snag.
As you listen, you’ll notice Kruse went out of his way to merchandise his managers as the heroes in his company’s story. Your management style is one of the eight factors we measure when evaluating your business’ readiness to sell. To find out how your business is doing on all eight drivers, complete your Value Builder questionnaire.
In pursuit of the American Dream, Kevin Kruse started his first company when he was just 22 years old. He worked around the clock, literally living out of his one-room office and showering each day at the YMCA, before giving up a year later deeply in debt. But after discovering the power of Wholehearted Leadership and Employee Engagement Kevin went on to build, and sell, several multimillion-dollar technology companies, winning both Inc 500 and Best Place to Work awards along the way. Kevin Kruse is a New York Times best selling author, an Inc 500 start-up founder, and his newest book, 15 Secrets Successful People Know About Time Management, is based on groundbreaking research into the habits of Olympic athletes, straight-A students, over 200 entrepreneurs and 7 billionaires, including Mark Cuban, Dustin Moskovitz, Andrew Mason, Mark Pincus, Kevin Harrington and others.
Built to Flip: From Start Up To Sell Out In Just 2 Years
After a motorcycle accident shattered Jon Read’s collar bone into 6 pieces, he wasn’t able to follow-through on his post-surgical rehabilitation appointments because of his busy travel schedule. So, he created an app.
into a profitable business after year one. Ten years later he sold Merced for $192 million, equating to over 3 times top line revenue.
America’s Condom King Sells His Business
Adam Glickman started hawking “Jumbo Brand Condoms” from his dorm room in 1989 under the moniker “a safe jumbo is a happy jumbo.” His brand grew and upon graduation, he started America’s first retail condom shop in New York City.
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 Mainspring Went From a Valuation of 1 to 5 Times Revenue
In 2014, Hank Goddard got an offer of one times revenue to buy his software company, Mainspring Healthcare Solutions.
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.
How One Key Hire Helped Dimple Up Their Value By 500% in 2.5 Years
Teetering on the brink of liquidation, a key hire at Dimple led to a dramatic turnaround that resulted in a $13.4M exit.
How One Founder Moved Her Multiple From 2 to 8 Times EBITDA
Dr. Kristin Kahle helps businesses pick a benefits program for their employees.
She started three insurance agencies and the first two were service businesses that sold for a modest 1.5-2 times EBITDA.
With her third business, Kahle wanted to attract a higher multiple, so she decided to transform it into a technology company.
Why Policy Medical Got 7.2 x Revenue
Saud Juman built PolicyMedical, a company enabling hospitals to document their procedures and policies, into a software company growing 100% a year when he sold it for 7.2 times revenue. It was a remarkable exit for a business Juman started in his mother’s basement.
The Founder of the “Female Viagra” Sells Her Business for $1 Billion
Cindy Whitehead started Sprout Pharmaceuticals and created the drug ADDYI, which has become known as the “female Viagra”.
Is Your Business Worth Less Than You Think?
Bert Martinez started Accelerator, a supplements company. When Martinez started to worry that one of the supplements he sold, ephedra could be banned, he put his business on the market, only to realize it was worth a lot less than he thought.
