Getting Acquired Doesn’t Have to Be a Blood Sport
“David Amigo sold his modular home business to a buyer he trusted and eventually remained friends with. This interview shares how important it is for the buyer and seller to like each other,” explains Sam Thompson, a Minneapolis business broker and the president of Transitions in Business. “There are always going to be hiccups during the selling process and if there is trust between each side the chances of the transaction closing are much better.”
Built to Sell Radio is all about maximizing a business owner’s take from the sale of their business. As an advisor, we’re about helping you as the business owner outmaneuver the buyer to maximize your take from an exit.
This week’s episode of Built to Sell Radio features David Amigo. He co-founded Carolina Country Homes, a modular home dealer. Amigo grew his company to $10 million in annual revenue but never loved the modular home business where red tape and financing challenges are commonplace.
After 17 years, Amigo decided it was time to sell. He hired a business broker who pegged the company to be worth 2-4 times Seller’s Discretionary Earnings (SDE) — a form of profit that took into consideration Amigo’s salary, bonus and other perks he earned from the business. Amigo’s broker found a buyer who made a fair offer, which Amigo accepted. It wasn’t enough money for Amigo to retire. Still, it was enough for him to buy a vacation home in Maine and take his kids on an adventure of a lifetime.
Amigo’s story shows that there is an alternative path to selling your business. Rather than worry about squeezing every last dollar out of an acquirer, you can accept a fair offer and move on to other things.