Exit Story: How $1M in Profit Changed Doug Lowenthal’s Life Forever

When Doug Lowenthal discovered that $1 million in EBITDA was the minimum threshold acquirers looked for in his industry, he had a goal. Then he learned that managed service providers—businesses that offer outsourced IT support—were trading for 6–8× EBITDA. That’s when he realized he was building something truly valuable. 

But getting there required more than just strong financials. Doug had to rethink how he led his team, structured his business, and prepared for life after the deal. 

In this episode of Built to Sell Radio, you’ll discover how to: 

• Open the books (without freaking out your management team) 

• Engender deep loyalty from employees who think like owners 

• Avoid getting retraded at the 11th hour 

• Spot the difference between tire kicking and the decision to sell 

• Figure out how much is enough to walk away 

• Break the news to your team without triggering panic 

Show Notes & Links

Connect with Doug on LinkedIn

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Definitions

Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted to reflect the profitability of your business in a buyer’s hands. Typical adjustments that may drive up  reported EBITDA would be things like executive compensation (assuming you’re paying yourself more than it would cost to replace you with a general manager), personal travel, automobile expenses, one-time extraordinary expenses (such as a lawsuit), etc.

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.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.

About Our Guest

Doug Lowenthal

Doug Lowenthal is the CEO of TruTechnology, one of the most forward-thinking MSPs in the industry. With over two decades of experience, Doug has led the evolution of managed IT services from reactive support to strategic business enablement. Under his leadership, TruTechnology has become a trusted partner for growing businesses looking to scale securely and efficiently.

Doug is known not just for his technical expertise, but for his strong focus on client experience, operational excellence, and building a culture of continuous improvement. In today’s episode, he shares key lessons on growing a successful MSP, navigating industry changes, and what it really takes to stand out in a crowded market.