Jeff Archibald founded Paper Leaf, a company specializing in developing websites, mobile apps and custom software. By offering a narrow scope of services to a variety of verticals, Paper Leaf built a reputation for handling challenging projects that generalist agencies couldn’t. Jeff’s commitment to simplicity and effective forecasting played a significant role in 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. Through a creative earn-out structure, Jeff ultimately received proceeds of equivalent to around 5x EBITDA.
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.