- Owned and Operated
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- The secret to securing a premium exit
Hello home service operators,
Businesses do not sell for premium prices by accident. They are built that way from day one.
Today’s resources:
A better way to manage your finances (so you can focus on other tasks)
A free, live session for anyone who wants to close more deals + drive more revenue
Watsco, Inc., North America’s largest HVAC/R distributor, just acquired Jackson Supply Company, a $230 million HVAC distributor with 25 Sunbelt locations
How Does Your GBP Stack Up?
Your Google Business Profile needs to generate leads for your home service business. If it doesn’t, you’re missing out on a massive opportunity.
Big Reputation shows you what is and isn’t working, allowing you to make the changes necessary to take the lead in your local market.
How does your business stack up? The answer is only a click away…
Build For the Exit Long Before You Plan to Leave
If you want a premium exit, build a premium business long before you ever plan to sell.
That sounds simple, but very few owners operate that way. Most build for income. The best build for value.
When you break it down, a premium business comes down to five things buyers care deeply about.
Additional resource: here’s the truth about selling your business (no one tells you this).
1/ EBITDA alone does not drive value: A million dollars of EBITDA is meaningless without context. Buyers care about gross margin, lead mix, customer quality, financing rates, Google reviews, fleet condition, callback rate, systems, and how dependent the business is on the owner. A company with clean operations and durable cash flow commands a premium. A messy company gets discounted.
2/ Buyers ask two questions:
What is the cash flow?
Will that cash flow continue after I buy it?
That second question is where most sellers lose value. If your business depends on you, your relationships, your tribal knowledge, or a few key employees, buyers see risk.
3/ Distress kills value: 9 of the 13 businesses I’ve acquired were distressed. Distressed businesses get distressed prices. Buyers demand a discount because they are taking on operational risk, cultural risk, and financial risk.
4/ Intentional sellers win: Only 2 or 3 of the 13 deals were intentionally built to sell, and those owners got the best outcomes. They improved margins, tightened systems, built recurring revenue, documented processes, and made integration easy. Buyers paid up because risk was low.
5/ Most owners wait too long: They think they will cash out big one day. Then health, burnout, divorce, or life forces a sale. Revenue slips. Energy drops. The business weakens. Buyers smell decline and offers shrink fast.
The real lesson
Do not build a business that only works for you. Build a business someone else would gladly overpay to own. That is where real exit value comes from.
Answer the Call. Book the Job. 24/7.
Avoca answers every call 24/7, books jobs directly into your CRM, and helps your team convert more leads without adding headcount.
It’s simple. More booked jobs → more revenue.
Build with the buyer in mind today, and you give yourself the freedom to sell on your terms tomorrow.
How do you feel about today's newsletter? |
👊 John
Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own.
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