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Lois Melbourne and her husband started Acquire Solutions, a software business that helped large companies manage their employees. After 18 years, they had grown to 85 people and received an offer from a private equity firm.
Lois Melbourne and her husband started Acquire Solutions, a software business that helped large companies manage their employees.
The Melbournes self-funded their business over 18 years, eventually growing it to 85 people when they received an offer from a private equity firm rolling up software companies in the human resources field.
The offer represented enough money for the couple to permanently retire in their forties, but it did not come easily.
To get the deal done, Melbourne had to negotiate with an army of lawyers representing the private equity buyer. She also had to find a way to tell employees who were like family members to her that the business was being sold. The stress of the negotiation and a feeling of loyalty to her staff left Melbourne in tears as she tried to explain to her team why they had sold the business. In this episode, you’ll learn:
Do You Have a Positive Cash Flow Cycle?
Unlike a lot of software companies, the Melbournes were able to keep 100% of their equity as they grew their business to almost 100 staff, which comes down to having a positive cash flow cycle, something we’ll cover with The Valuation Teeter Totter exercise in Module 10 of The Value Builder System™. Get started for free by completing your Value Builder questionnaire now.
John Warrillow: This episode of Built To Sell Radio is brought to you by The Value Builder System. So you’re an entrepreneur and you’ve got somewhere between a million and 10 million in annual revenue and you’re trying to figure out what’s next. Maybe you want to scale up, maybe you want to sell, maybe you want to bring in a manager and delegate some of the day-to-day stuff, bring in the next generation of leaders. Maybe you want to pass it down to your family. All of those options, the one prerequisite is that it’s built to sell. That it’s actually something that you could pass on to another generation without you, and that’s really what we try to evaluate using the