How to Sell Your Business But Stay in Control of It

About the Episode

Did you know that you can sell your business without giving up your brand, your team, and your legacy? This episode introduces a unique type of buyer, one who invests in your business without taking it over. You’ll learn how to get paid, keep running your company with its brand and culture intact, and have multiple opportunities for additional cash in the future.

If you grind tomorrow and your business grows, you are going to reap the rewards of that hard work directly. Our whole model is finding business owners who are willing to roll equity and bet on the future.

Richard Lewis

What You’ll Learn

• The right buyer will want you to stay: Unlike many traditional buyers, a strategic investor may not want to take over your business. This episode introduces a new model where the investor buys a minority stake but lets you keep your team, brand, and culture.
• You can have your cake and eat it too: This new investment model allows you to take a large amount of cash off the table while continuing to run your company with your team. This strategy, often called a “recap,” gives you a deep breath, and you can focus on growing your business with your new partner.
• Your success is tied to your business’s performance: With this new model, you’ll be incentivized to run hard because you’ll still own a significant stake in your company. If your business grows, you’ll reap the rewards directly, and the increase in your EBITDA and value could result in a second or third payout that is larger than the first.
• This partnership can unlock new growth: Getting a company from $20 million to $100 million in revenue is hard, and most business owners don’t have the time or capital to do it on their own. By partnering with a strategic investor, you can use their expertise, cash, and resources to scale your business to the next level.
• Find a partner who is people-first: The most successful partnerships are built on trust and a shared vision. When you go to sell your business, make sure to find a buyer who is a people investor and not a geography or industry investor. This will ensure that your business’s unique culture and people are protected.

Topics Covered

Want More? Related Resources:

• Business Exit Plan & Strategy Checklist | A Complete Guide
• M&A Basics: Building a Sellable Business
• M&A Guide | The 4 Types of Buyers of Businesses

Meet Our Guest

Richard Lewis

CEO and Founder of Redwood Services | Memphis, TN

Prior to forming Redwood, Richard spent nearly 12 years in a variety of operating and leadership roles at The ServiceMaster Company, working with some of the world’s most iconic and successful service brands, including Terminix (pest control), TruGreen (lawn care), Merry Maids (residential cleaning), ServiceMaster Restore (disaster restoration), ServiceMaster Clean (janitorial), Furniture Medic (furniture and cabinet repair), TruGreen Landcare (commercial landscaping), and American Home Shield (home warranties). From 2017 to 2020, Richard was a member of the Terminix senior leadership team, where he was responsible for Strategy, Analytics, and Growth Initiatives. Richard began his career on Wall Street as an Analyst at Bear Stearns.

LinkedIn: https://www.linkedin.com/in/richardlewismemphis/