The 8:1 Flip
November 2, 2016 |
About this episode
Subscribe:
Steve Huey bought The Learning House for $2.7MM in 2007 because he saw the opportunity to professionalize its sales and account management. Five years later, Huey sold the business for $27.5MM earning his shareholders an 8 to 1 return.
In this episode, you’ll hear Huey’s advice on:
- How to raise a $4MM angel round in seven days.
- An inexpensive way to figure out what your business is worth.
- Buying a business with little of your own money down.
- Handling a buyer who drops their offer after signing an LOI.
- Differentiating between an earn-out and an escrow.
Have You Built an Automatic Business?
The Learning House garnered an offer from a private equity firm of almost four times their top line revenue because they had a recurring revenue model. Turning your transactional model into an annuity stream is what we tackle in The Automatic Customer Builder tool, our focus in Module 5 of The Value Builder System™. Complete Module 1 by getting your Value Builder Score.
Click to Tweet: Episode 67 of #BuiltToSell Radio: The 8:1 Flip with Steven Huey.
To hear the entire episode on iTunes, click here and don’t forget to subscribe! You can also find us on Stitcher , Soundcloud, or anywhere podcasts are found!
At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.
About Our Guest
Steve Huey is passionate about helping others reach their goals. His belief is that human capital is quickly becoming the only differentiator between good companies and great ones. He strives to create a corporate culture that embraces the entrepreneurial spirit in order to align both personal and professional goals. Huey believes if you can do that, you are assured success. Huey also loves integrating cutting-edge technologies into already existing markets that desperately need them. An experienced executive in leading and growing technology-based businesses, he manages aggressive and innovative management teams—including business development, product design and management, software architecture and operations management.
Related to this topic
When To Hire A President To Run Things
Want to bring in a President to run your company day-to-day? Here’s how to get it right.
Lessons From a A £20 Million Exit
Have you ever stayed in a fancy hotel and wondered how much they pay Aveda for those little bottles of shampoo? Turns out, there is a company called Pacific Direct that acts as a middleman between the hotel chain and the company supplying the shampoo.
How One Key Hire Helped Dimple Up Their Value By 500% in 2.5 Years
Teetering on the brink of liquidation, a key hire at Dimple led to a dramatic turnaround that resulted in a $13.4M exit.
Exit Like a Tycoon Without Losing Your Soul
In 1995, with just $5,000 in start-up capital, Ashok Vasudevan launched Tasty Bite offering ready-to-eat Indian entrees to American consumers.
Twenty-five years later, Tasty Bite is America’s largest brand of prepared Indian food sold everywhere, from Walmart to Whole Foods. In 2017, Vasudevan announced he had sold the company to Mars, which has a portfolio of beloved brands including everything from Uncle Ben’s to Skittles.
Nathaniel Broughton grew Spread Effect to a $4 million company in only four years — so why would he sell for a rock bottom multiple?
4 Big Takeaways on Building the Value of Your Company
This week, we’re back with the latest Intel edition of Built to Sell Radio. We feature four recent guests and dissect what made their companies built to sell.
How Matchmaking By Microsoft Led To One Of 2018’s Biggest Technology Deals
Mergers can be painful. But when Mitchell Feldman was approached by Microsoft about merging with another company, the result was a match not even HPE could resist.
Lee Gregory built Sir Lines-A-Lot, a company that paints lines on highways, to 40 employees. It was blue-collar work, so when Gregory learned his company could be worth north of eight figures, he decided it was time to sell. During this interview, Gregory drops dozens of knowledge bombs for aspiring value builders.
Calvin Johnson built Lykki, an office supply company, to more than $7 million in annual revenue.
Johnson had two divisions, one had office kitchen supplies (e.g., coffee), and the other sold office supplies. The kitchen supplies business was more attractive to acquirers than the office supplies side, so Johnson decided to separate the divisions and sell them separately.
The first time David Phelps sold his dental practice, he ended up in a legal battle that cost him more than $100,000.
Imagine turning your expertise into an 8-figure exit. That’s exactly what Sue Bryce did. Bryce built a $1 million photography studio in an industry where owners are often limited to low six-figure businesses that are dependent on them.
How To Avoid The Hodgepodge Discount
The Traffic & Conversion Summit attracts 7,000 attendees and keynote speakers like Sir Richard Branson. So why would the creator want to sell it?