The downside of selling young
August 5, 2015 |
Want to increase the value of your business by up to 71%?
Take the 13-minute survey and get your Value Builder Score
About this episode
Subscribe:
Aaron Walker thought the money from selling his business would make him happy, but life after selling was a lot harder than he thought.
At the age of 27, Aaron Walker sold his business to a Fortune 500 company. He thought the money would make him happy, but life after selling was a lot harder than he thought. In this episode of Built to Sell Radio, Aaron Walker shares his story of rags to riches to depression and how he climbed back out. He also provides three tools you can use to help visualize your life after selling so you can avoid the trap that many cashed out entrepreneurs fall into.
About Our Guest
Businessman and Life Coach, Aaron T. Walker, has inspired many through his leadership, mentorship, and consistent pursuit of excellence. He enjoys helping others and believes experience is a great teacher. 35 years of entrepreneurship and marriage have given Aaron a wealth of experience. Aaron continues to reach new heights and broaden his perspective of the terrain by examining his experiences and growing from them. It only took a few years as a partner with David Patton Construction LLC for Aaron to help take the business from doing one to two projects per year to a multi-million dollar company, voted number one builder for three consecutive years by Nashville’s House & Home & Garden Magazine’s People’s Choice Awards. He sold his retail business to Cash America USA, a Fortune 500 company. In addition to being the owner of eight lucrative businesses, Aaron participates in civic endeavors.
Related to this topic
Why The Fine Print In Your Acquisition Offer Matters
Before the pandemic, fancy salad bars were popping up in major cities across the US, making the category one of the fastest-growing sectors of the restaurant industry. Despite their popularity in major cities, when Ana Chaud moved to Portland, Oregon, she was surprised to see a shortage of good salad options.
The downside of accepting shares as payment from your acquirer
Doug Chapiewsky built CenterPoint Solutions Inc. into an Inc. 500 company with $5 million in revenue and more than $3 million in EBITDA before he sold it to Israeli-based Nice Systems.
Walking Away From an 8 Figure Exit
Josh Davis started Spirit of Women, a marketing agency selling content about women’s health to hospitals. Davis built the company up to almost $10 million in annual revenue when he kicked off a process to sell it, which he hoped would garner an offer of around 7x Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).
Inside the Mind of a Private Equity Investor
Frank Cottle led an investor group to buy Hi-Mark Software for 10 times EBITDA. Cottle then sold a chunk for 15 times and ultimately sold his last tranche of equity for more than 16 times EBITDA to Lufthansa.
Entrepreneurs can be categorized into two groups. On one hand, you have the doers. These are the people who organically grow a business over time. They plod along for years, or even decades in the same business. They look for small, incremental improvements every day.
3 Ways to Untangle Yourself from Your Business
Debbie King was running on a treadmill so familiar to service company owners. Her company, Association Analytics, helped associations make sense of their member data, and she was wasting time on proposals that often did not get accepted. Then, when King did win a project, she was creating a custom solution for every job that required her to hire senior-level staff and personally get involved in client work. The model put a cap on her business, and when she reached 20 employees, she decided it was time to get out.
Start-Up To Ferrari In Five Years
Zain Hasan started an insurance agency called National Insurance Consulting Group (NICG), in 2014.
The Kevin Harrington Way to Structure the Sale of Your Business
Mark Timm built Cottage Garden, a company selling decorative music boxes, to $8 million in revenue and around $1 million in EBITDA when he decided to sell it.
Timm sold the business for around 4.5 times EBITDA. He got half of his cash upfront, with the other half paid over a five-year earn-out. Timm not only stayed for his earn-out but when the acquirer decided to move the offices of Cottage Garden, Timm agreed to repurchase the business, only to sell it two years later, for a second time.