What to Do When Your Partner Is Not Ready to Sell
“Tyler Jefcoat co-founded Care to Continue, a provider of in home care for seniors. Jefcoat shares how he separated from his partner,” states Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “He also provides sound advice on improving their business model. One example he describes is how they turned their negative cash flow into positive cash flow.”
Tyler Jefcoat co-founded Care to Continue, which provides in-home care for seniors, in 2012. Jefcoat built the company to more than 100 employees when he got an offer from a private equity group for more than five times EBITDA. Jefcoat was thrilled. The only problem? His partner wasn’t ready to sell, which kicked off an acrimonious battle ending with Jefcoat selling his shares back to his partner.
Jefcoat tells his story with humility and passion and drops a collection of knowledge bombs, including:
- How to switch from a negative to positive cash flow model.
- How to leverage the simplifier subscription model.
- Why you should discuss debt before you enter into an operating agreement with a partner.
- Why your “training wheels business” may be a prerequisite for a more significant exit down the road.
- How to structure the buyout of a partner.