Exit Story: Selling a 20-Person Agency for 5.5x EBITDA

Most stories we cover involve eye-popping multiples or headline-making exits. They’re fun—but not always realistic. 

Jeff DeGarmo’s story is different. No private equity windfall. No tech hockey stick. Just a well-run, 20-person service business built over 16 years and sold for a solid 5.5x EBITDA. 

In this episode, you discover how to: 

• Structure a multi-partner business for an exit 

• Move from marketing budgets into operational spending 

• Navigate conflicting goals between co-founders 

• Use recurring revenue to create financial stability 

• Avoid getting burned in an earn-out 

• Sell to a sophisticated acquirer without losing your shirt 

• Exit without fireworks—and still win 

If you’re building a service business and want to know what a normal exit looks like, this episode is worth your time. 

Show Notes & Links

Connect with Jeff on LinkedIn

Do you want your business to run without you? Book a time here and we can show you how to start.

Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

About Our Guest

Jeff DeGarmo

Jeff DeGarmo is a seasoned entrepreneur, franchise consultant, and business broker with over 30 years of experience in leadership and business development. A U.S. Navy veteran and former Naval Flight Officer, Jeff transitioned to entrepreneurship by co-founding a web development firm that grew into a full-service ad agency, which he successfully sold to a public company.

He later owned and exited a TSS Photography franchise and now serves as a Senior Associate with ValueCap Inc., helping business owners navigate valuations and exits. Jeff also supports aspiring entrepreneurs through J DeGarmo, LLC, offering franchise consulting and business coaching. An Ironman triathlete and certified fitness coach, Jeff brings energy and discipline to every venture he takes on.