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On today’s show, Pete Martin and Ryan Tansom, CEO of Arkona, how Pete intentionally applied what he learned in the first couple exits to his last venture in order to scale up EntryPoint to sell to KPMG for 12x EBITDA without having to go with the sale or take an earn out.
This is a very rare story because many times professional services companies are valued around 1x revenue or a small multiple of EBITDA with an earn out. Pete explains how he created a company manifesto at the very beginning, created a very unique service and pricing model and then scaled up using very little cash… all on purpose.
Pete is a seasoned executive and serial entrepreneur who has worked in sales, operations, and executive management for over 25 years. Over his career, Pete has been personally involved in the sales of over $1 billion worth of software, services, and technology to global companies, including Dow Chemical, Lockheed Martin, Goodyear, Eli Lilly, and Continental General Tire, as well as to small to medium-sized businesses. He started, scaled, and sold four out of four previous companies, including car leasing, systems integration consulting, business process outsourcing, and software distribution. His most recent sale was to the global auditing giant, KPMG.
07:08 – “Even though I made, pretty much, nothing on the exit, the learning in the time that I owned it was pretty much priceless. That was basically a million dollar MBA.” – Pete Martin
12:00 – “Let’s just go build a really, highly valuable company. Because when you do that, you have lots of options.” – Pete Martin
15:36 – “Those first couple of hires that you bring on board will pretty much, irreversibly, set the culture. So you’ve got to be really mindful of what you do up front.” – Pete Martin
23:57 – “We used to take our employees through, we called it, Finance 101 because we wanted them to understand the impact of ‘not getting your timesheet in so we can invoice’ has on the company.” – Pete Martin
26:35 – “The value of a business that has a bunch of independent contractors is not worth the lot, because anybody can go replicate that tomorrow.” – Pete Martin
Pete has personally advised hundreds of C-level executives and business owners across 26 industries to grow their firms, enhance their business operations, and improve their financial performance.