<description>&lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;We often think of a "successful exit" as handing over the keys to a perfectly oiled machine—a business that is growing, profitable, and operationally sound.&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;But what happens when the machine starts to sputter?&lt;/span&gt;&lt;span class="EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;What if the margins are too thin, the operations are exhausting, and you are simply burned out?&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;It is easy to assume that a broken business model means a worthless company. But as this week's guest on &lt;/span&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt;Built to Sell Radio&lt;/span&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt; proves, sometimes the individual parts are worth more than the whole.&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;Meet Jason Patel.&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;Jason built &lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;Transitions Education&lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;, a college counseling marketplace. On the surface, it looked great: upper six-figure revenue and a noble mission. But under the hood, customer acquisition costs were eating his margins, and he was carrying $250,000 in personal debt to keep it afloat.&lt;/span&gt;&lt;span class="EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;He was ready to walk away. He assumed he had zero leverage.&lt;/span&gt;&lt;span class="EOP SCXW222492157 BCX0" data-ccp-props="{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "TextRun SCXW222492157 BCX0" lang="EN-CA" xml:lang="EN-CA" data-contrast="auto"&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt;Then, a "Micro Private Equity" firm reached out. They &lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;didn't&lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt; want his headaches. They &lt;/span&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt;didn't&lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt; want his operations. They &lt;/span&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt;didn't&lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt; even want his business model.&lt;/span&gt;&lt;/span&gt;&lt;span class="EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;They wanted his "parts."&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;Specifically, they wanted his &lt;/span&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt;SEO ranking, his blog traffic, and his 5-star reputation.&lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt; They realized they could strip away the expensive service delivery and plug his high-performing marketing assets into their own portfolio.&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;In this episode, Jason breaks down how he structured an asset sale that allowed him to:&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt; &lt;div class="ListContainerWrapper SCXW222492157 BCX0"&gt; &lt;ul class="BulletListStyle1 SCXW222492157 BCX0" role="list"&gt; &lt;li class="OutlineElement Ltr SCXW222492157 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props= "{"335552541":1,"335559685":720,"335559991":360,"469769226":"Symbol","469769242":[8226],"469777803":"left","469777804":"","469777815":"multilevel"}" data-aria-posinset="1" data-aria-level="1"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;Sell the high-value "parts" (marketing assets) without the operational baggage.&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/li&gt; &lt;/ul&gt; &lt;/div&gt; &lt;div class="ListContainerWrapper SCXW222492157 BCX0"&gt; &lt;ul class="BulletListStyle1 SCXW222492157 BCX0" role="list"&gt; &lt;li class="OutlineElement Ltr SCXW222492157 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props= "{"335552541":1,"335559685":720,"335559991":360,"469769226":"Symbol","469769242":[8226],"469777803":"left","469777804":"","469777815":"multilevel"}" data-aria-posinset="2" data-aria-level="1"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "TextRun SCXW222492157 BCX0" lang="EN-CA" xml:lang="EN-CA" data-contrast="auto"&gt;&lt;span class="NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle="Normal (Web)"&gt;Avoid a grueling earn-out (because the buyer &lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;didn't&lt;/span&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt; need him to run the company).&lt;/span&gt;&lt;/span&gt;&lt;span class="EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/li&gt; &lt;/ul&gt; &lt;/div&gt; &lt;div class="ListContainerWrapper SCXW222492157 BCX0"&gt; &lt;ul class="BulletListStyle1 SCXW222492157 BCX0" role="list"&gt; &lt;li class="OutlineElement Ltr SCXW222492157 BCX0" role="listitem" aria-setsize="-1" data-leveltext="" data-font="Symbol" data-listid="1" data-list-defn-props= "{"335552541":1,"335559685":720,"335559991":360,"469769226":"Symbol","469769242":[8226],"469777803":"left","469777804":"","469777815":"multilevel"}" data-aria-posinset="3" data-aria-level="1"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;Pay off his debt and fund his next venture.&lt;/span&gt;&lt;span class="EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/li&gt; &lt;/ul&gt; &lt;/div&gt; &lt;div class="OutlineElement Ltr SCXW222492157 BCX0"&gt; &lt;p class="Paragraph SCXW222492157 BCX0"&gt;&lt;span class= "NormalTextRun SCXW222492157 BCX0" data-ccp-parastyle= "Normal (Web)"&gt;If you feel like your business model is grinding you down, this episode will open your eyes to the hidden value sitting on your balance sheet right now.&lt;/span&gt;&lt;span class= "EOP SCXW222492157 BCX0" data-ccp-props= "{"134233117":true,"134233118":true,"201341983":0,"335559740":240}"&gt; &lt;/span&gt;&lt;/p&gt; &lt;/div&gt;</description>

Built to Sell Radio

John Warrillow

Ep 532 Is Your Business Worth More Dead or Alive?

FEB 6, 202657 MIN
Built to Sell Radio

Ep 532 Is Your Business Worth More Dead or Alive?

FEB 6, 202657 MIN

Description

We often think of a "successful exit" as handing over the keys to a perfectly oiled machine—a business that is growing, profitable, and operationally sound. But what happens when the machine starts to sputter? What if the margins are too thin, the operations are exhausting, and you are simply burned out? It is easy to assume that a broken business model means a worthless company. But as this week's guest on Built to Sell Radio proves, sometimes the individual parts are worth more than the whole. Meet Jason Patel. Jason built Transitions Education, a college counseling marketplace. On the surface, it looked great: upper six-figure revenue and a noble mission. But under the hood, customer acquisition costs were eating his margins, and he was carrying $250,000 in personal debt to keep it afloat. He was ready to walk away. He assumed he had zero leverage. Then, a "Micro Private Equity" firm reached out. They didn't want his headaches. They didn't want his operations. They didn't even want his business model. They wanted his "parts." Specifically, they wanted his SEO ranking, his blog traffic, and his 5-star reputation. They realized they could strip away the expensive service delivery and plug his high-performing marketing assets into their own portfolio. In this episode, Jason breaks down how he structured an asset sale that allowed him to: Sell the high-value "parts" (marketing assets) without the operational baggage. Avoid a grueling earn-out (because the buyer didn't need him to run the company). Pay off his debt and fund his next venture. If you feel like your business model is grinding you down, this episode will open your eyes to the hidden value sitting on your balance sheet right now.