“Mehul Sheth, founder of VMS Aircraft, shares valuable insights into what all business owners need to know when selling their business,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “There are many valuable tips in this podcast such as how to avoid dropping your price during due diligence, securing a sincere buyer and how to find the right buyer.”
Mehul Sheth started VMS Aircraft in 1995 with a plan to sell spare parts to airlines. Sheth had just $25,000 to invest in inventory, so VMS got off to a modest start. However, by 2016 Sheth had crested $8 million in revenue. VMS counted some of the largest airlines in the world as customers.
Sheth was hoping for 6-8 times EBITDA for his business, so when he got an offer of 7.4 times EBITDA from a French company looking to establish a beachhead in the United States, Sheth decided to sell.
There are lots to pull out of this edition of Built to Sell Radio, including how you can:
- Improve your gross margins in a competitive industry.
- Create recurring revenue streams through service contracts.
- Ensure your employees follow your Standard Operating Procedures (SOPs).
- Attract acquirers who would typically turn their nose up at companies of your size.
- Evaluate the authenticity of an acquirer.
- Avoid re-trading after diligence identifies working capital discrepancies.
- Increase your leverage in a negotiation to sell.