Built to Sell Radio Ep 271 Greg Alexander - How to Sell a 30-Person Consultancy for $162 Million
6 snips
Jan 29, 2021 AI Snips
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Episode notes
Valuation Mistake Early On
- SBI initially valued on 1.25x revenue while having 52% profit margins, undervaluing the company by almost 400%.
- This early valuation mistake cost Greg about $80 million in equity dilution.
Private Equity Drives Valuation
- Private equity influx drove multiple expansion in consulting valuations.
- An auction environment created competition and drove acquisition prices higher.
Lean Remote Operation Benefits
- Running a lean, remote firm avoids overhead like office rent and large HR departments.
- Trust employees to work efficiently remotely, recruiting from anywhere, increasing access to talent.