He bought it for $40,000 and sold it for 6.2x EBITDA

Murray Kent had no background in electrical conduit fittings when he paid $40,000 for a four-person business that, as he put it, looked like a bit of a crack den. What he did have was Value Builder’s 8 drivers — pinned to the wall next to his desk as a literal road map for every decision he made. 

In this episode of Built to Sell Radio, you discover how to negotiate a clean exit with no earn-out complications and no equity rollover. 

You’ll learn: 

• Why posting the eight drivers next to your desk changes the decisions you make every day 

• How Murray reduced his biggest customer from 50% of revenue to the low 20s — and why even that required extra meetings to satisfy the buyer 

• The counterintuitive reason a surprisingly high offer should make you more cautious, not less 

• How Murray turned a proposed earn-out into a simple 12-month warranty holdback worth less than 5% of the sale price 

• Why Murray broke the news to staff in small groups rather than a town hall — and how he kept each group from spoiling it for the next 

• Why open-book management and profit sharing made his team part of the business, not just employees of it 

• What Murray wishes he had known going in: the one negotiation skill no podcast can fully prepare you for 

Show Notes & Links

Connect with Murray on LinkedIn

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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.

Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.

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

Murray Kent

Murray Kent is an entrepreneur based in Brisbane, Australia. He is involved in building and scaling businesses across consumer and digital sectors, with a focus on identifying opportunities and creating value through brand, marketing, and operations.

Murray has worked across a range of ventures, applying a hands-on approach to business growth and development. His work centers on building sustainable businesses that align with evolving consumer needs.