How to Grow Your Business and Maximize Your Sale Price

About the Episode

Are you ready to grow your business fast before selling? This episode breaks down how growth equity can help you boost your company’s value and secure a much better business exit. Learn the essential components of these deals so you can control your sale and maximize your final payout.

Growth equity is a great option for companies that are looking to really accelerate their growth.

James Carey

What You’ll Learn

• Use Growth Capital to Increase Your Asking Price: Buyers will offer more for companies that are larger and more profitable. That’s why a growth equity investment can make your business more appealing to buyers.
• Keep Control of the Business by Selling a Small Piece: Keep the majority ownership of your business by only selling a small piece (minority stake) to the investor, ensuring you stay in charge of all key decisions until you are ready to sell.
• The Invested Money Must Be Used for Growth, Not Your Pocket: Most of this new capital must be spent on activities that grow the company, like hiring more staff or buying a small competitor. While you might take a small amount for yourself, maybe 10% to 30%, the main point is to increase the company’s value so you get a larger payout when you finally sell the whole business.
• Plan Your Growth to Avoid Risks: The investor knows you are aiming for fast, big growth, and that always carries a little risk. They make up for that risk by planning for a quick, big sale in just three to five years. If you have a clear plan for how to spend their money, you both win when you sell the business.
• Your Next Buyer Will Likely Be a Bigger Investor: The person who buys your company after the growth spurt is usually a larger investment group, like a private equity firm or a big competitor. The time spent growing the business focuses on making your company large and successful enough to be sold to a much larger buyer for a much higher price.

Topics Covered

Want More? Related Resources:

• Accelerate Your Company’s Growth
• Seller’s Discretionary Earnings (SDE) | Definition & Examples
• EBITDA | Definition, Formula & Example – A Complete Guide
• M&A Guide | The 4 Types of Buyers of Businesses

Meet Our Guest

James Carey

Partner at Next Sparc Growth Partners | Miami, Florida

James Carey is a Partner at Next Sparc Growth Partners, a professional family office that makes direct investments in rapidly growing founder-led and family-owned businesses, and leads the Business Development efforts at the firm. Before joining Next Sparc, James was a Vice President and the Head of Business Development at Peterson Partners, a diversified private investment firm focused on growth equity and venture capital investments. Prior to joining Peterson Partners, James was a Director at H.I.G. Capital, a leading global private equity investment firm with over $50 billion of equity capital under management, where he sat across the entire family of funds. Earlier in his career, James was an Associate at New River Capital Partners, an affiliate of Huizenga Holdings, where he was responsible for Corporate Development. James received a Bachelor of Science in Business Administration from the University of Vermont in Burlington.

LinkedIn: http://www.linkedin.com/in/jamesjcarey