An acquisition of a firm where the founder had a long-term strategic vision and how they wanted to exit. Because of this vision, he turned down a cash buyer. While most of the episodes on this podcast place price as an important consideration but not the only consideration, it’s rare to have a cash deal turned down and to accept 80% carry back plus an earnout.
A blockbuster deal where a firm could have acquired a billion-dollar company that was over three times the size of his firm and why it didn’t work out.
Walking away from a deal that was months in the making and where there was a lot of hard work and due diligence expense and time invested into the deal. Everything pointed to this being great fit for an acquisition but there was just one thing that wasn’t quite right.
One of his smallest acquisitions turned out to be one of the best and by far the most profitable.
Tom Hine
Capital Wealth Management, LLC
Glastonbury, Connecticut
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The post Why an Earnout Turned Out to Be Nearly 40% Better Than a Cash Deal appeared first on Business Exit Stories.
Pursuing Post-Exit Dreams & Hitting Pause On The Podcast.
How a Sales Price Went From 1X to 4X with the Stroke of a Pen
Part Two – Michael Richmond: What Happens When the Owners of a Company Don’t Know Why Their Company Was Valuable
Part One – Michael Richmond: Why a Company That Was Growing Exponentially Couldn’t Get Sold
Part Two – Linda Broom: Why a Business Growing By Leaps and Bounds Couldn’t Get an SBA Loan
Part One – Linda Broom: The One Thing You Can’t Forget When Selling a Business – If You Do It Can Cost You Big Time
Why You Shouldn’t Buy a $400,000 Ferrari Before Your Business Sale Closes
A Success Plan That Took a Business Worth Million to Zero
What Is Pre-Due Diligence and How It Can Make You Millions
How Two Partners in a Successful and Growing Business Managed to Take It to Zero When They Decided to Sell
How Skillfully Crafting A Story Regarding Your Exit Can Turn Your Biggest Loss Into The Reason Why A Business Is Sold
Why Certain Types Of Buyers Will Pay More Money For The Same Business
How an Entrepreneur’s Ego Took a Deal from $30M to $1.2M
How To Sell Your Company For Less Money But End Up Putting More Cash In Your Pocket
How Doing the Right Things Turned a $20M Sale into a $40M Sale
When Issues Surface in Due Diligence, You May Wish to Take A 2nd, 3rd, and 4th Look At Other Critical Aspects Of The Business
From Making Money as a Side Hustle to a $19M Business Losing Money
Going from a Meager Six Figure Walk Away Exit Offer to Millions Plus a Second Bite of the Apple on a Subsequent Sale
How An Entrepreneur Exited Their Business After A Cancer Diagnosis
How the IRS Can Kill a Deal Without Breaking a Sweat
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