Hot New Listing + Exit Strategy

44-Year Digital Marketing Agency | Specializing in Jewelry Industry Clients | 85% Customer Retention Rate | 7 Year Average Lifetime Value

Financial Information:

• Revenue: $2,815,457

• SDE: $523,603

• Multiple: 3.6

• List Price: $1,890,000

What I love about this company:

• 44-Year-Old Niche Digital Marketing Agency

• Specializing in Jewelry Industry Clients

• Diverse Client Base (Retailers, Designers, Importers)

• 85% Customer Retention Base

• 12,000+ Email Subscribers

• Multiple Services and Revenue Generators

• 25% Compound Annual Growth Rate

• Strong Reputation in the Jewelry Industry.

• Contracts Lasting 7+ Years

• Not Reliant on a Few Clients

If you would like more details, please shoot me an email --> Email

THE EXIT STRATEGY

This week, I want to flip the script and focus on the sell side. Here is a recent success story that illustrates exactly why preparation makes all the difference when selling your business.

Last month, I helped a client sell their business for 4.3X EBITDA when the industry average was just 3.2X. The difference? A methodical approach to preparation that transformed an already good business into an irresistible acquisition target.

Whether you're planning to exit in 2 months or 20 years, the strategies I'm about to share can dramatically increase your eventual sale price. Let's dive in...

HOW TO COMMAND PREMIUM MULTIPLES: THE 5-STEP PROCESS

Step 1: Professionalize Your Operations

Most buyers aren't looking for a job - they're looking for a business that runs without constant owner involvement. When my recent client approached me, they were working 50+ hours weekly in their business. By the time we listed it, they were down to just 15 hours.

Here's what we did:

• Created detailed SOPs for every key process

• Built and trained a management team that could operate independently

• Documented all vendor relationships and key customer accounts

• Implemented automation tools that reduced manual work

Pro Tip: Start by tracking everything you do for a full week. You'll be surprised how many tasks can be systematized and delegated.

When potential buyers asked, "How dependent is this business on you?" we could confidently show them a business that practically ran itself. This single factor attracted buyers willing to pay premium prices.

Step 2: Clean Financial Records

One of the biggest mistakes business owners make is running too many personal expenses through their business in the years leading up to a sale. While this might save on taxes in the short term, it significantly devalues your business when it's time to sell.

What my client implemented:

• Professional accounting system with meticulous expense tracking

• Removal of $117,000 in personal expenses from the books

• Three consecutive years of clean, growth-focused tax returns

• Monthly reconciliations with supporting documentation

This financial clarity alone increased the valuation by $420,000!

The Hard Truth: Every dollar of properly documented profit can translate to $3-5 in sale price. Is saving on taxes today worth losing hundreds of thousands tomorrow?

Step 3: Maximize Profitability

In the 24 months before listing, we implemented a profitability plan that increased the business's EBITDA.

Our strategic approach:

• Cut unnecessary expenses, saving $22,000 annually

• Implemented pricing optimization, increasing margins by 12%

• Created a subscription component that provided recurring revenue

The result? One client's SDE jumped from $370K to $400K At a 4X multiple → that's an extra $120K in their pocket!

Action Item: Identify your three largest expense categories and challenge yourself to reduce each by 10% without impacting operations. The savings go straight to your bottom line - and multiply when it's time to sell.

Step 4: Prepare For Due Diligence

Most deals fall apart during due diligence, but my clients are ready.

How we prepare sellers:

• Confidential data room prepared before first buyer call

• Video overview of business highlighting key operations

• Financial statements reconciled and verified

• Customer and vendor concentration risks identified and addressed

This preparation transforms the due diligence process from a deal-killer to a deal-accelerator. Buyers gain confidence when they see a professionally organized business with nothing to hide.

Quick Win: Create a folder structure for your business documents now, even if you're not selling for years. Start organizing contracts, financial records, and operational documents in a clean, accessible format.

Step 5: Leverage Multiple Buyers

The secret weapon in maximizing sale price is creating a competitive bidding environment.

My process ensures:

• Simultaneous outreach to thousands of qualified buyers

• Confidential teaser that generates dozens of interested parties

• Strategic negotiation playing buyers against each other

• Terms optimization beyond just the sale price

The DIY mistake that costs sellers millions: 

1. → Personal emotion clouding negotiations 

2. → Limited network of potential buyers 

3. → No leverage during due diligence 

4. → Inability to create competitive tension

When we created a bidding war for my client's business, the final offer came in 37% higher than the initial one. That's the power of professional representation.

THINKING ABOUT SELLING?

Most business owners wait until they're burned out to start the sales process. By then, it's too late to implement many of these value-enhancing strategies.

The ideal time to start preparing your business for sale is 1-2 years before you actually want to exit.

If you're curious about what your business might be worth today - and what it could be worth with the right preparation - I'm offering complimentary valuation consultations to readers of this newsletter.

Email me at [email protected] with "Valuation" in the subject line, and we'll schedule a confidential discussion about your specific situation.

A Final Note

Ready to ditch the boring and join me in the digital space? Reply to this email—I’d love to hear your thoughts or share more about what’s worked for me.