Meet our client:
Tracy Danziger, Founder
Tracy was 43 when we first met her and 46 when we celebrated the sale of her business. Tracy was clear when we met her, she wanted to sell. She wanted to take a break, spend time with her family and pursue other business opportunities after her kids left the house for college. Tracy was tried of spending hours a day on Zoom meetings, conference calls and occasionally financing new asset acquisitions for her business. To compound the problem, her key employees weren’t really “key.” Tracy had grown a successful side business to a national digital marketing firm, and she was on the verge of burnout. Tracy was stuck.
Plan Facts
Tracy is 43, 2 kids in middle school
5 key employees (but not really key)
23 employees
Revenue of $45MM
EBITDA of $3.3MM
Ready to sell
Results
Implemented Value Drivers, including:
Management Team
Operating Systems
Growth Plan
Financial Controls
Scalability
Worked to increase EBITDA to $4.1MM
Sold to Private Equity
Tracy found financial freedom and emotional relief
Tracy was introduced to us by her Property and Casualty advisor. She was concerned about the rising costs of capturing and storing sensitive digital information. The concern was driven by the desire to rid herself of personal responsibility/guarantees from the business. She was ready to step back. As we began our work with her financial planner, he helped to create the assumptions necessary for us to determine what sale price would meet her post ownership objectives (taking time off and then starting or buying another business). Tracy wanted to design a plan that would allow her to work fewer hours, create financial monitoring controls, grow the value of her business and prepare it for the sales process.
As we continued our work with Tracy, we found that she was open to new ideas of growing business value. We helped her implement several value drivers, including developing, motivating, and retaining a management team. Developing and implementing operating systems. Creating a growth plan that ties directly into the operation system and financial controls. Lastly, by leveraging these value drives we were able to make her company more valuable and attractive to private equity buyers.
Ultimately, through the design and implementation of an exit plan, Tracy was able to sell her business to a private equity buyer that met her personal financial goals, all within the timeframe she desired and now spends time with her kids.
If you would like to learn more about selling your business to a third party, please contact us today.