Punching Above Your Weight When It’s Time to Sell

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Mehul Sheth started VMS Aircraft in 1995 with a plan to sell spare parts to airlines. Sheth had just $25,000 to invest in inventory, so VMS got off to a modest start. However, by 2016 Sheth had crested $8 million in revenue. VMS counted some of the largest airlines in the world as customers.

Sheth was hoping for 6-8 times EBITDA for his business, so when he got an offer of 7.4 times EBITDA from a French company looking to establish a beachhead in the United States, Sheth decided to sell.

There are lots to pull out of this edition of Built to Sell Radio, including how you can:

• Improve your gross margins in a competitive industry.
• Create recurring revenue streams through service contracts.
• Ensure your employees follow your Standard Operating Procedures (grab our free ebook on creating SOPs here).
• Attract acquirers who would typically turn their nose up at companies of your size.
• Evaluate the authenticity of an acquirer.
• Avoid re-trading after diligence identifies working capital discrepancies.
• Increase your leverage in a negotiation to sell.

 

Check out our full M&A Glossary

About Our Guest

Mehul Sheth started an aircraft and aerospace materials distribution operation from his parents basement and built it over 21 years and then sold the company to a 150 million dollar multinational corporation. Sheth developed every aspect of the operation including; Finance, Accounting, Shipping, Receiving, Re-packaging, Customer Service & the outside salesforce. Secured product lines with top manufacturers. Recognized in the industry as one of the top aerospace distributors. Signed and executed government contracts, major airline contracts as a small business, and a small disadvantaged business as identified by the SBA.

Check out his website: SmallBusinessHorsepower.com

 

Connect with Mehul:
SmallBusinessHorsepower@gmail.com