In October 2012, we began to advise a $12 million company that hadn’t grown in 5 years. It was a good company, producing about 15% EBITDA margins and well over $1 million annually in free cash flow.
We had known the CEO for several years and knew he was about three years away from wanting to sell his business and retire.
“How about if we double or triple your business before we sell it?”, I asked. He thought I was on some illegal substance – but not so.
After talking further, we were retained to help him create a growth plan, to determine what capital was needed and to find the capital.
October 2014, LTM revenue is in excess of $23 million. By doubling revenues, margins have improved slightly, and the equity value of his business (he owns 100%) has more than tripled.
CEOs – good CEOs – often get into the weeds of a business that the big picture is lost. This CEO didn’t think it was possible to grow his business – he was a “one armed paper hanger”.
Sometimes growth just needs vision – and the right set of contacts.
I’ve spent the last 23 years focused in healthcare, and in my nearly 40 year career, I’ve had the privilege of working with about 200 CEOs.
I’m looking for good companies that want to improve – with a goal of a liquidity event. Healthcare is preferred, but that’s not essential. What is essential is that we can work well together, and I really believe there is a substantial growth opportunity and that my experience & contacts can help our clients achieve the results.