Richard Manders co-founded iAutomation and built it up to $12M before deciding it was time to recapitalize. Manders sold 75% of his company for almost 8 times EBITDA to a Private Equity Group (PEG) and held 25% interest in the company after the sale.
Manders continued working for the PEG for seven more years. Last year, the PEG sold iAutomation, and Manders got out completely.
In this episode, you’ll learn:
- How to structure a private equity sale
- What it means to get a “second bite of the apple”
- How to solve a problem once and get paid many times for the solution
- The keys to making a partnership last over 20 years
- The joys and challenges of growing a business with someone else’s money
Manders knew that if he was going to be able to receive a premium offer for his business, he needed to replace himself and get out of the “Owner’s Trap”. Curious about how you can begin this process in your own business? You’ll get all the details in Module 7 of The Value Builder System™. Get started for free right now by completing Module 1.
About Richard Manders
Richard Manders co-founded iAutomation which became the leader in its industry, employing 160 people and generating $80M in sales. Manders played key roles in seven acquisitions, dozens of evaluations, and has a deep understanding of how to value a business, qualify it for strategic fit, and optimize and grow combined enterprises.
A lifelong learner, Manders now dedicates his time and expertise to helping other CEOs and leadership teams scale their businesses through coaching.
Reach out to Rich on Freescale Coaching or call him at (860) 729-0932.
Do You Know An Entrepreneur With A Story To Tell?
We’re constantly on the prowl for interesting stories from owners who have sold their businesses. We look for owners who have sold a business that was generating $1 million or more in revenue, who are willing to share their story candidly with our community. Forbes ranked Built to Sell Radio one of their top 10 podcasts for entrepreneurs and we have more than 100,000 downloads, so your story will get shared with a great community of like-minded owners. Nominate yourself or someone you know today.
At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.
Are more sales and profits really the key to a more valuable company?
After a motorcycle accident shattered Jon Read’s collar bone into 6 pieces, he wasn’t able to follow-through on his post-surgical rehabilitation appointments because of his busy travel schedule. So, he created an app.
What’s Your Business Worth?
Take the 13-minute survey and get your Value Builder Score
The Value Builder Score was inspired by the book, Built to Sell. It was created to help business owners like you build more valuable companies. Join more than 30,000 entrepreneurs by getting your free Value Builder Score, and find out how valuable your company really is.
Get Your Score Now It’s free and 100% confidential.