Susan Hrib started an oil and gas industry consulting firm called Signum back in 1994.
Recently Hrib received a call from an industry contact who said they would be interested in buying Signum. After more than 20 years in the same company, Hrib decided she was ready to move on. The acquirer offered four times EBITDA and Hrib was hoping for something closer to eight, but they were close enough to continue talking and ultimately reached a deal.
In this episode, you’ll learn:
- How to sell a consulting firm without hard assets
- How to structure your earn-out
- How to incentivize your second-in-command
- Why growth can (sometimes) be bad
- The importance of Standard Operating Procedures
- How to ensure your deal doesn’t fall apart in due diligence
At the time of the acquisition, Hrib was only working an hour or so a day thanks to an amazing second-in-command, who ran her business day-to-day. Do you have a team (or person) to take care of the daily running of your company? If not, we’ll design the team you need during Module 7 (we call it “Hub & Spoke”) of The Value Builder System™—complete Module 1 now by completing the Value Builder questionnaire.
About Susan Hrib
As CEO and founder of Signum Group, Susan oversees corporate strategy and guides the development of the SignumWay™ suite of new industry solutions and tools. She presently serves on the Board of Councillors for the Carter Center and is an advisory board member for the Women’s Leadership Exchange and Committee Board member of Usher’s NewLook. In her spare time she serves as a mentor to many students belonging to Usher’s NewLook.
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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.
There are lots of ways to value your business but only one that will ensure you get what you want from the sale of your company.
In 2014, Hank Goddard got an offer of one times revenue to buy his software company, Mainspring Healthcare Solutions.
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