What Selling a Solid Service Business Really Looks Like
“Jeff DeGarmo founded a marketing company with multiple partners and eventually sold his business in 2019 to a large public company. They received a 5.5 multiple of EBITDA,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “In this episode we walk you through how Jeff and his partners sold their business. We also discuss recurring revenue and how to avoid getting burned with an earnout.”
Most stories we cover involve eye-popping multiples or headline-making exits. They’re fun—but not always realistic.
Jeff DeGarmo’s story is different. No private equity windfall. No tech hockey stick. Just a well-run, 20-person service business built over 16 years and sold for a solid 5.5x EBITDA.
In this episode, you discover how to:
- Structure a multi-partner business for an exit
- Move from marketing budgets into operational spending
- Navigate conflicting goals between co-founders
- Use recurring revenue to create financial stability
- Avoid getting burned in an earn-out
- Sell to a sophisticated acquirer without losing your shirt
- Exit without fireworks—and still win
If you’re building a service business and want to know what a normal exit looks like, this episode is worth your time.