Small service-based businesses are typically not worth very much, but Walter Bergeron made one simple change to his business model that garnered a $10 M acquisition offer.
Walter Bergeron started a small company servicing circuit boards for large food processing plants. It was a “break/fix” business with lumpy demand and cash flow.
Struggling to grow, Bergeron starting offering a membership model where instead of calling when they had a machine to repair, subscribers paid a monthly fee so they could have their circuit boards serviced at any time.
The switch to a membership model transformed the business and Bergeron quickly grew the company to $7 million in annual sales, at which point he was offered $10 million to sell it.
About Walter Bergeron
Over the last three decades, he has built and sold six businesses, with his latest deal topping $10 million. He is a serial entrepreneur, Marketer of the Year, and a three-time bestselling author.
In his latest bestselling book, 8 Figure Exit Formula, he shows other driven entrepreneurs how to exponentially build their businesses through acquisitions, and then sell their business over and over so they can experience their own 8 figure payday.
Some Highlights of the Show
5:27 – One killer idea for growing the top line of a business…
5:40 – Walter discusses the importance of having a unique message
6:30 – How Walter stumbled on the idea of monthly membership and membership levels
8:05 – What was the trigger event to sell?
9:12 – Divestiture – 11 different times
9:50 – Walter discusses one of those divestitures
10:20 – “Renewable Rembrandts”—what do you have in your attic?
12:15 – The final price and the sales transaction
15:40 – Doing divestitures differently—with the best parts of the business
17:30 – In retrospect, what Walter would have done differently
19:48 – The significance of the 10 million dollar sale
22:00 – The due diligence was intense…
23:00 – Walter discusses how the sale has changed the way he lives
Connect with Walter
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