Punching Above Your Weight When It’s Time to Sell

Punching Above Your Weight When It’s Time to Sell

“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.

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