How To Avoid The Hodgepodge Discount

Juggling Man, Buying a Business with Hodgepodge Product Lines

How To Avoid The Hodgepodge Discount

Nobody likes paying for a hundred TV channels when all you want is a few, which is why so many people are dropping cable in favor of a subscription to only the select channels they’ll watch.

Similarly, no investor wants to buy a business with a hodgepodge of product lines if they can’t figure out how to value and monetize all of what you’ve created.

…Which is how Ryan Deiss got himself into a sticky situation.

Deiss is the co-founder of Digital Marketer, a growing e-learning platform for marketers with – up until recently – a thriving annual conference that draws 7,000 marketers and speakers like Sir Richard Branson.

When Deiss went to raise money for Digital Marketer, would-be investors didn’t know how to categorize them.  Some investors liked Deiss’ e-learning company but didn’t want to be in the events business. Others liked events and didn’t value e-learning as much. That’s when Deiss made a drastic decision that would end up paying off handsomely.

In this episode, you’ll learn:

  • How more product and service lines could reduce your market value
  • How to identify if you have a division worth selling off
  • What it takes to get Richardson Branson to keynote your event
  • How to negotiate your Non-Compete
  • The one thing you should never do when agreeing to an earn out
  • The importance of knowing your number before you start negotiating with an acquirer
  • How to fly business class on your acquirer’s dime
  • How to avoid the biggest regret Deiss wishes he had avoided

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