Drew Goodmanson started Monk Development as a custom website development shop and evolved it into a product enabling churches to establish an online presence. With more than 300,000 churches in the United States, Goodmanson’s company took off and he grew it to more than $3 million in recurring revenue per year, leveraging the Software as a Service (SaaS) business model.
In 2015, Goodmanson sold Monk to Ministry Brands and was then dispatched by Ministry to go and buy up similar software companies. Working for Ministry, Goodmanson eventually acquired 10 small software companies into one mega group.
Goodmanson has the unique perspective of being both the hunter and the hunted, and in this episode, you’ll learn about:
- Reconciling your emotional fears around selling
- Switching from a service business to a product business (and how to fund the switch)
- Assembly line thinking
- The dangers of getting deal “pregnant”
- Translating values from window dressing to operating principles employees actually follow
- How to avoid an earn-out
- “Post acquisition economics” and how to use them to drive up the value of your company
- The best time to sell your company
Have You Figured Out Your Recurring Revenue Model?
Goodmanson got a multiple of revenue (not profit) for his business in part because it relied on a subscription based billing approach. You may think subscription billing is just for software companies but there are actually nine unique recurring revenue models, meaning any company, from just about any industry, can find a model that’s right for them. Recurring revenue will be our focus in Module 5 of The Value Builder System™—get started for free by completing Module 1 (Value Builder questionnaire) now.
About Drew Goodmanson
Drew is a founder/CEO, who has built and sold several companies. His last company, Monk Development was a SaaS company in the faith-based market. In 2015 Monk Development was sold to Ministry Brands where Drew consolidated 10 SaaS companies into one business unit. In this role, he was part of the team that won the 2017 Private Equity Large Market Deal of the Year.
He has led companies in a variety of markets and industries including winning INC 500/5000, CEO of the Year and Best Places to Work awards. He has raised seed money from high net worth executives and venture capital from Silicon Valley. He has experience with SaaS companies from start-up to companies over $350m. Over the last few years he has coached CEO’s and consulted with dozens of companies to align them for rapid growth.
Currently he is a partner at Crown Growth (http://www.crowngrowth.com/) where he helps entrepreneurs grow their business, experience liquidity and create wealth through transitioning their company into a platform company to consolidate their market.
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.
Got a dream number you want to sell your business for? Here are five surprising ways acquirers use that number against you.
Anthony Lacavera has started 12 businesses, 6 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.
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