By STS Capital
According to a recent J.P. Morgan survey, 50% of business owners are considering a business transition within the next decade, yet only 8% feel prepared.
For Bob Verdun, CEO of Scaling Up, the importance of preparation became clear when his own company received an unsolicited offer from a private equity firm. Although the initial offer was close to his target, he chose not to accept it immediately. Within 60 days, the offer increased by $5 million. By ultimately engaging STS Capital Partners to run a competitive sale process, Bob achieved a transaction value approximately double the initial offer.
His experience highlights an important distinction: the value a business owner expects to receive is not necessarily the maximum value a strategic buyer may be willing to pay.
In the webinar Scaling Up Valuation with an Exit in Mind, Bob joined Sean Friday, Executive Vice Chairman of STS Capital Partners, to explore how business owners can proactively build enterprise value, assemble the right advisory team, and position their businesses to achieve an Extraordinary Exit™. The discussion also examined the role of strategic buyers and why they may be willing to pay a premium beyond traditional industry multiples.
Key Takeaways:
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- The multiple multiplies everything: On $5 million of EBITDA, moving from a 6x to an 8x multiple adds $10 million.
- Build value by design: You don’t need to do all 22 drivers. Pick a few and work on them quarter by quarter.
- Assemble your exit team early: Engage a coach, a sell-side advisor, and specialists years before you plan to sell.
- Think like a strategic buyer: They price your business in their hands, so they can pay premiums for what it unlocks for them.
- Know what the exit is for: Define the outcomes you want beyond the price, including your role, the culture, and your legacy.
Watch the full webinar here
Click here to watch the full recording of Scaling Up Valuation with an Exit in Mind.