A Key Hire Can Make All of the Difference

Picture (Device Independent Bitmap) 2Higher Multiple and Shorter Transition Achieved for Selling Tech Company Owners

(Strategic Planning) – Two talented engineers replaced their largest customer by bringing on a raft of new business. When they went to sell in 2008, potential buyers felt that current ownership was too important to customer retention. As a result, offers were made at 4.7 times EBITDA and about half of the proceeds were contingent, tying up the owners for an additional three years. Janas recommended that the owners postpone the sale and identified a young engineer to take over day to day sales responsibilities. A few years later the business was sold for 7.5 times EBITDA, or 60% higher multiple than offers received in 2008, with a one year employment obligation and few contingencies. “I never could have accomplished this on my own,” declared one of the owners.


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