From $1M in Profit to a Life-Changing Exit
“Doug Lowenthal founded and grew a managed service provider (MSP) to over $1M in EBITDA,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “He eventually sold his business and shares his journey including opening his books to his employees, breaking the news of the sale to his team and figuring our how much is enough to walk away.”
When Doug Lowenthal discovered that $1 million in EBITDA was the minimum threshold acquirers looked for in his industry, he had a goal. Then he learned that managed service providers—businesses that offer outsourced IT support—were trading for 6–8x EBITDA. That’s when he realized he was building something truly valuable.
But getting there required more than just strong financials. Doug had to rethink how he led his team, structured his business, and prepared for life after the deal.
In this episode of Built to Sell Radio, you’ll discover how to:
- Open the books (without freaking out your management team)
- Engender deep loyalty from employees who think like owners
- Avoid getting re-traded at the 11th hour
- Spot the difference between tire kicking and the decision to sell
- Figure out how much money is enough to walk away
- Break the news to your team without triggering panic