Why Did This $3MM Company Sell For 5X Revenue?

Why Did This $3MM Company Sell For 5X Revenue?

Brian Ferrilla started Resort Advantage in 2006 to help casinos adhere to new anti-money laundering laws.

By 2015, Ferrilla had built his company up to 15 employees and was on target to hit $3 million in annual revenue, when they ran into a glitch. Ferrilla’s team had dozens of product ideas but not enough money to develop them all.

Ferrilla decided to look for an investor, partner or outright acquirer. He received three offers and settled on one that offered him more than five times revenue for his business.

In this episode, you’ll learn:

  • How to retain ownership of your product even when you’re customizing it for a big company
  • How to avoid having your equity diluted when bringing on partners
  • The impact of a barrier to entry on the value of your company
  • How to develop your long list of potential acquirers
  • How to tell your employees you’re selling the company without alarming them

Listen now.