4 Steps to Reduce Your Company’s Dependency on You
“Kelby Zorgdrager owned a training business called Developintelligence and sold it in 2020 for four times revenue,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “This episode focuses on removing yourself from your business prior to selling to get the best price. Kelby also used a very unique technique to develop his high performing sales team.”
In 2006, Kelby Zorgdrager started DevelopIntelligence, an outsourced training provider helping programmers develop new skills and adapt to ever-changing technologies.
The business snowballed as Zorgdrager onboarded most Fortune 500 giants in his space. However, Zorgdrager had a problem. The company was too dependent on him.
To ensure the business could succeed without him, Zorgdrager implemented a four-step system to replace himself as the rainmaker of his company.
The strategy worked. By 2020, Zorgdrager grew the business to $12.1 million in revenue, which piqued the interest of some acquirers. A year later, Zorgdrager signed an acquisition offer from Pluralsight in a deal valued at $48.9 million. In this episode, you’ll learn how to:
- Sell to a Fortune 500 giant.
- Establish trust with a team of independent contractors.
- Develop a high-performing sales team using an unconventional tactic.
- Replace yourself as the rainmaker of your company.
- Utilize your M&A attorney to get more money for your business.