The Philosophy of Building to Sell
June 7, 2017 |
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:
Dan Faggella started Science of Skill, an e-commerce website selling self-defense videos and paraphernalia, in 2013. His goal was to sell the business as soon as possible, and he started soliciting offers just 14 months later.
The initial offers were low, but by 2017, he received his first seven-figure offer, which he decided to accept in order to fund a new venture. Faggella took a mercenary approach to company building. He knew before he even started his business that he wanted to sell it and he describes his philosophy of building to sell during my interview with him. You’ll learn:
- Three surprising places your name should never appear if you want to sell your business.
- The one thing you should rarely do if your goal is to improve your company’s value.
- The one thing you need to remove from your job description as an entrepreneur.
- How to incentivize your remote employees.
- How to get 90% of your sale price up front.
- How to find a business broker (and what to look for).
- How the S.B.A. could influence the sale of your business.
Faggella is unapologetic about building to sell because he had a higher purpose for the money. Have you ever thought about what you would do if you cashed out? We’ll help you design a plan for your life after the sale in Module 12 of The Value Builder System™—get started right now by completing the Value Builder questionnaire.
Our guest
Dan Faggella is the CEO and founder of TechEmergence, the only market-research and company-discovery platform focused exclusively on artificial intelligence (AI) and machine learning. Faggella sold his first business for six figures and his second business for seven figures. Both served as economic fuel for TechEmergence. Faggella believes that the most important ethical concerns of the coming 30 years will be the creation and expansion of sentience and intelligence in technology. As a result, he spends his time focusing exclusively on this issue.Boost the Value of Your Business
Sign up for a copy of The Subscription Economy: 9 Subscription Models Any Business Can Adopt eBook
Download Now
Related to this topic
Why A NYSE-listed Giant Bought This $2M Business
Angela Mader started selling her fitbook through retail giants like CVS, Target and Walgreens. Little did she know, Mader was also attracting the attention of one of the world largest acquirers.
Nathaniel Broughton grew Spread Effect to a $4 million company in only four years — so why would he sell for a rock bottom multiple?
Wisdom From The Sale Of Six Businesses
Laura Gisborne has sold six companies, including The Art of Wine, a tasting room with a subscription-based wine club division. With $1MM in annual revenue, it was still a small business, when Gisborne reasoned it was the perfect time to sell.
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).
3 x EBITDA To 13 x EBITDA In Just 2.5 Years
Embanet broke just about every rule there is for running a company and still sold for $200M.
The Backstory Behind E&J Gallo’s Acquisition of Barefoot Cellars
Michael Houlihan and Bonnie Harvey built Barefoot Cellars to sales of more than 600,000 cases of wine per year when they got the attention of E&J Gallo, America’s largest winemaker.
10 X Earnings By Future Proofing Your Buyer
David Trewern grew DT to $10 million in annual revenue before he sold it to STW Group for almost 10 times profit after tax, getting maximum value for his business because he started to look at the world through the eyes of his would-be acquirer.
How To Double An Acquisition Offer For Your Business
Bobby Albert took over the family moving business. Determined to succeed, he transformed his father’s five-person business into a fast growth company, eventually employing 150 people before being approached by a strategic acquirer.
Susan Hrib started an oil and gas industry consulting firm called Signum back in 1994.