“Greg Alexander started a business called Sales Benchmark Index (SBI) that offered sales consultancy. He shares his success story that includes allowing his employees to work from home well before it became popular,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “His cash flow was so strong that he had no trouble attracting buyers and getting a very strong EBITDA multiple for his price”.
At age 36, Greg Alexander decided to start Sales Benchmark Index (SBI), a sales consultancy. Over the next eleven years, Alexander built the business to 30 employees who collectively generated about $30 million in consulting fees per year.
Eleven years later, Alexander sold SBI for $162 million — equivalent to roughly 11 times EBITDA.
Alexander sold without signing on for an earn-out, an incredible achievement for a service business. This episode is jam-packed with insight, including:
- Alexander’s “80-million-dollar mistake” and how to avoid the same pitfall.
- How Alexander was able to generate $1 million of consulting fees per employee.
- How to productize your service.
- Why you need to decide whether you want to “be a king or get rich.”
- How to create a killer corporate culture when everyone works from home.
- How to handle the emotional impact of re-trading.
- Why Alexander thinks of an exit as a stepping stone rather than the finish line.
Please note: this episode includes language some listeners may find offensive.