How EBITDA Adjustments Impact The Value Of Your Business
June 14, 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:
Ari Ackerman started Bunk1 in 1999 to give parents a way to keep in touch with their kids while they were at summer camp.
To read a transcript of this episode, click here.
Over 17 years, Ackerman grew his technology business into one of the biggest brands in the summer camp industry, which is about the time they were approached by TogetherWork, a company backed by a billion-dollar private equity giant. TogetherWork’s original offer was too low, but after Ackerman projected what Bunk1’s profit would be in the hands of the buyer, the deal got a whole lot more attractive.
In this episode, you’ll learn:
- The difference between EBITDA and adjusted EBITDA.
- How to structure a note as part of your sale.
- The biggest mistake Ackerman made in scaling Bunk1.
- The difference between an expression of interest and a letter of intent.
- How to pick a president.
- Why giving employees equity can be a mistake.
- One emotional condition you need to maximize the value of your business.
Can your business run without you?
Part of what made Bunk1 attractive to TogetherWork was that Ackerman had hired a president to run Bunk1 day-to-day. Setting up your business to run without you is a central theme of The Value Builder System™—get started now by getting your Value Builder Score.
About Our Guest
Ari Ackerman is a serial entrepreneur and proud philanthropist. Among his companies, he is the Founder and (former) Chief Executive Officer of Bunk1.com, the technology company that allows parents to see pictures and send emails/Bunk Notes to kids at summer camp. Bunk1 has been fortunate enough to have been featured in dozens of media outlets including CNN, the Today Show, the New York Times, and Wall Street Journal. Ari recently sold Bunk1 to Togetherwork, the emerging leader in Group Management Software and Payments.
Related to this topic
When to Tell Employees You’re Thinking of Selling
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.
How to Hire a CEO Without Losing Your Company
When we discover a vaccine or reliable treatment regime for COVID-19, there will inevitably be an unscrupulous gang of counterfeiters trying to make a quick buck by selling fake remedies.
Yvonne Tocquigny built her advertising agency up over 35 years working with clients like Jeep and Dell. Then in 2015, she got a call asking if she would consider selling. The problem was that her agency had become part of who she was.
How One Pivot Doubled The Value of This Business
James Garvey grew Objective Loyalty from a standing start in 2005 to $2.5 million in EBITDA. When he and his partner decided to sell they were able to quickly double the value when they switched sell tactics.
From Technological Obsolescence to a Multi-Million Dollar Exit
From a service no one wanted anymore to a growing business and a strategic buyer, find out how AMI was rebuilt to sell.
The Tech Start-Up vs. The Bootstrap Lifestyle
Peter Demangos has started two businesses in the Human Resources sector. One was a bootstrapped insurance brokerage where they sold employee benefits programs to large clients. The other was an HR software company called Collage, where Demangos and his co-founders raised $3.5 million of investment capital and sold three years later for $15 million.
In 2001, Adam Torres started Team Dynamix, a software used by colleges and universities to keep their IT department organized.
The Man Behind the $1.3B Sale of Wind Mobile
Anthony Lacavera has started 12 businesses, six of which he has exited. His exits have ranged in value from the $6 million he got for one of his recent start-ups to the $1.3 billion that Wind Mobile sold for.
How To Quadruple The Value Of Your Business
Laura Steward, the founder of Guardian Angel Computer Services was told that her business was worth less than 50% of one year’s revenue. Determined to get more for her business, she underwent a makeover focusing on her subscription program.
What Happens When the Big Dog Sells
Anthony Amos and his brother started HydroDog, an Australian mobile dog washing and grooming service. After revolutionizing the industry and growing to more than $10 million in annual revenue, Amos decided it was time to sell.
Transcript
John Warrillow: Hey this episode of Built to Sell Radio is brought to you by the Value Builder System. I had the opportunity to interview Stephanie Breedlove the other day. She sold her nine million dollar payroll company for a cool 54 million dollars. How did she do it? She focused on the eight things that drive company value. Things like what we call the Switzerland structure, monopoly control, recurring revenue, all things you’re going to evaluate in your own business using the