“Adam Torres started TeamDynamix and struggled at the beginning to land big accounts,” states Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “Through creative efforts he was able to build customer trust and create a very successful business. His story shows how to sell a business in an attractive industry. He offers a valuable tip on what he should not have done.”
In 2001, Adam Torres started TeamDynamix, a software used by colleges and universities to keep their IT department organized.
Over the next 15 years, Torres and his partner built TeamDynamix up to more than $5 million in annual sales. That’s when Torres, who figured his company was worth 3-5 times revenue, realized selling would give him enough money to live comfortably for the rest of his life.
There are some great lessons for aspiring value builders in the episode. You’ll discover:
- The surprising thing that happens to software companies at $3 million in sales.
- What Reps & Warranties are and why they can be so scary for first-time sellers.
- What a “cap and basket” deal is and how it can limit your downside when selling your business.
- Why Torres wishes he’d never signed a five-year non-compete.
- How Nexus laws have the potential to derail your deal.