How to Sell a Consulting Business for 12 X EBITDA (Without an Earn-Out)

How to Sell a Consulting Business for 12 X EBITDA (Without an Earn-Out)

“Pete Martin, co-founder of EntryPoint Consulting shares his story on how he sold his business to a strategic buyer,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business.  “He provides insight into the process and what buyers should do when a deal stalls.  He took it head on and approached the CEO of the acquiring company.  He was then able to overcome the buyers hesitation to close the transaction and enjoy a very strong multiple.”

Pete Martin built EntryPoint Consulting to 34 employees when he sold it to KPMG for a staggering 12 times earnings — without an earn-out.

In an industry that usually trades at low single-digit multiples, most of which is generally tied to a lengthy earn-out, Martin’s exit is an epic achievement. In this episode, you’ll discover:

  • Two specific tactics to pull yourself out of the operations of your business.
  • How to create an “on-ramp” offering.
  • Two things Martin did to convince KPMG to buy EntryPoint without an earn-out.
  • Why you should never separate the negotiation of terms from the price.
  • How to protect yourself from a competitor posing as an acquirer to steal your employees.

You’ll also get understandable definitions for M&A lingo like:

  • Indication of Interest (IOI)
  • Downstroke

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