Jeff Archibald founded Paper Leaf, a company that develops websites, mobile apps, and custom software. By offering a narrow scope of services to various verticals, Paper Leaf built a reputation for handling challenging projects that generalist agencies couldn't. Jeff's commitment to simplicity and effective forecasting significantly influenced Paper Leaf's success. He used fixed payment contracts to ensure steady cash flow and offered a limited number of technologies, allowing his team to become experts. These practices stabilized the business and made it attractive for acquisition.
When approached by ZGM, a marketing firm, Jeff initially received a 3x EBITDA offer. Jeff ultimately received proceeds equivalent to around 5x EBITDA through a creative earn-out structure.
You'll Discover How To:
- Negotiate a unique earn-out structure that works for both you and your acquirer
- Decline business without losing a customer
- Position your business strategically to attract potential buyers
- Simplify your operations to enhance efficiency and attractiveness for acquisition
- Implement effective forecasting methods to stabilize cash flow
- Use fixed payment contracts to ensure steady revenue
- Delegate responsibilities while maintaining control through clear KPIs
Want to learn how to make your business irresistible to buyers? CLICK HERE to schedule a meeting with me today.
Video: How to Turn a 3x EBITDA Offer into 5x with Jeff Archibald
Mark Hartmann is a three-time Inc 500|5000 CEO with a rich sales, operations, and leadership background in the insurance, financial services, and healthcare sectors. With extensive experience growing and selling his own businesses, Mark leverages his expertise to help owners grow and sell businesses valued at $1M —$25M. He’s earned a master’s degree in organizational change management from St. Elizabeth University and a graduate certificate in executive coaching from Columbia University. Mark’s professional certifications include Certified Mergers and Acquisitions Professional (CM&AP), Certified Business Intermediary (CBI), Certified Exit Planning Advisor (CEPA), and Certified Value Builder (CVB).
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