AskMyBoard

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PODCAST SUMMARY

 

How to Sell a Professional Services Firm for 12x EBITDA

Pete Martin is genetically encoded to be an entrepreneur. And with four businesses built, scaled, and sold under his belt, plus another two currently active, there’s no doubt today’s guest knows his way around an exit.

Today on the show, Pete Martin talks to Simon Bedard, CEO of Exit Advisory Group headquartered in Australia, about his former business,  EntryPoint Consulting. He grew this business for 11 years, to 34 staff before selling to KPMG.

Traditionally, similar businesses trade for low multiples, but Pete sold for 12x EBITDA AND with no earn-out. Was this a unicorn? Or does Pete have a magic recipe for successful exits?

In this episode we’ll cover everything from:

  1. The right way to approach starting a business with an exit in mind.
  2. How to get out of the Owner’s Trap and remove yourself from the business in order to attract acquirers.
  3. How to leave a lasting legacy and maintain relationships with your employees when you exit

About Our Guest
Pete Martin is a serial entrepreneur with 6 start-ups including several successful exits, generating an average return to investors of 11 times invested capital.

Pete worked in sales, operations, and executive management for over 25 years, beginning in sales at IBM, executive management at SAP, and then building six of his own companies.

He has been personally involved in the sales of over $1 billion of software, services, and technology to global companies including Dow Chemical, Lockheed Martin, Eli Lilly, and Continental General Tire, as well as small to medium-sized businesses.

Pete started, scaled, and sold four out of four previous companies including car leasing, systems integration consulting, business process outsourcing, and software distribution (two remain active, one of which is AskMyBoard). His last firm was sold to the global auditing giant, KPMG.

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.

LinkedIn: https://www.linkedin.com/in/petegmartin/

Facebook: https://www.facebook.com/askmyboard/

Twitter: https://twitter.com/VotemPete

YouTube: https://www.youtube.com/channel/UCu7ocy516GMuqVFDEZV4PRw

Show Notes
(5:27) Pete Martin started EntryPoint Consulting in 2003 and grew to three independent businesses all functioning to support clients of large, German-based powerhouse, SAP.

(8:10) Pete and his business partner started EntryPoint knowing they wanted to exit, but didn’t want to pre-determine what type of exit that would be. Their philosophy: Build a valuable company so you have the most amount of options when the time comes.

(12:00) Two years before the sale, the entrepreneurial itch re-emerged. Learn how Pete set EntryPoint up for a vastly successful exit.

(18:20) Want to learn how Pete sold his business to KPMG for 12x EBITDA? Here’s how it started.

(24:06) One top tip to take away: Don’t separate price and terms. Pete’s advice: Come to the table with a range based on different terms you would accept.

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