We often cover spectacular exits at Built to Sell News with people selling for eight, nine, or even ten figures. But those exits, while exciting, are not the typical story on Main Street. So this week, we thought we’d walk down Main Street and interview a small business owner who sold a smaller company.
Michael Lynch created TinyPilot, a simple hardware device that allows users to remotely control their computers without installing software.
Like most small companies, TinyPilot was a Main Street business with around $1 million in revenue and roughly $250,000 in profit. Michael’s story is a snapshot of a typical exit for most small businesses. In this episode, you’ll discover how to:
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Sell a Main Street business.
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Handle a low-ball offer.
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Escape the feeling of being trapped inside your business.
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Distinguish between selling your shares vs. your assets.
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Avoid legal snafus during diligence.
Quote of the Week
I thought about like the things that would make it less stressful for me are also the things that might make it more attractive to a potential buyer.
Deals
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Crescent Pass Energy has agreed to sell its natural gas properties and related facilities in eastern Texas to Diversified Energy Company PLC for $106 million. These assets are expected to generate approximately $26 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next twelve months, resulting in a purchase multiple of 3.8 times.
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H5P Group, known for creating software that helps teachers make interactive learning materials, has been acquired by D2L Inc., a company that provides online learning tools and platforms, for $25.6 million, with potential additional payments up to $7.4 million based on performance milestones. The deal values H5P Group at approximately five times its annual recurring revenue.
