The Hidden Cost of Being a Hands-on Boss

the cost of being a hands on boss when trying to sell your business

The Hidden Cost of Being a Hands-on Boss

“Jaclyn Johnson founded her media company in 2012 and in 2018 had an offer to sell valued at $40M. The buyer backed out days before closing mainly because the business was too dependent on her. She went to work on removing herself from the business and sold to an acquirer a couple of years later,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business.

In 2012, Jaclyn Johnson founded Create & Cultivate, a media company that educates and inspires women to succeed in business.

By 2018, Johnson had grown Create & Cultivate to eight employees when an acquirer offered her a staggering $40 million. Unfortunately, the deal was too good to be true. When the acquirer discovered her hands-on management style, they pulled out.

Learning from her mistakes, Johnson implemented a collection of strategies to ensure Create & Cultivate could thrive without her.

By the end of 2019, Johnson had grown to $14 million in revenue ($4 million EBITDA) when acquirers came knocking again. This time she was ready. Create & Cultivate was acquired by Corridor Capital in a deal valued at $22 million. In this episode, you’ll learn how to:

  • Ensure your business can succeed without you.
  • Build a thriving online community.
  • Create partnerships with well-known brands.
  • Avoid a common error made during due diligence.
  • Respond to a shrewd acquirer looking to get your business for a discount.

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