“You want to sell your business because you are tired. I get it. You’re so tired you want to give it away for 4x.” I told the CEO of a laboratory services company, “I’ll tell you what, I’ll buy your company for 4x on a 60-day note, and I’ll then go sell it for 6x and pocket the difference.” The CEO didn’t take my offer, but she did work for another 150 days to get her 6x payout.
She thought her company was only worth 4x because she was looking at the standard industry payout for her type of business. She believed that standard valuation would be her price. However, she had a valuation compounder in an area that her competitors did not, a sales machine: LOAD FULL ARTICLE