1644 – Selling Your Business With Increased Value with Blue Sky Exit Planning Services’ Joe Gitto

In this episode of the Thoughtful Entrepreneur, your host Josh Elledge speaks to the Managing Director of Blue Sky Exit Planning, Joseph Gitto.

Joe focuses on the lower middle market, which includes companies with revenue ranging from 5 to 25 million dollars. This market is often overlooked when it comes to exit planning, and Joe's mission is to bring the level of expertise and resources available to larger companies to these smaller businesses.

Exiting a business is not just a financial decision; it's an emotional one too. Joe shared his experience selling his healthcare business and how the buyers initially wanted him and his wife to stay involved, but eventually, they all realized it was best to have a clean break. He acknowledges that letting go of a business can be emotional, as owners worry about how their employees will be treated and what changes will be made

When valuing a company for a reasonable exit price, Joe mentions that there is no one-size-fits-all approach. While some may use a multiple of four as a rule of thumb, every business differs. Factors such as the industry, technology, and team can significantly influence the valuation.

Joe also shared insights into the process of preparing for due diligence. The potential buyers can be strategic, financial, or internal, and the preparation starts by putting together the necessary materials and working with corporate counsel. Depending on the industry, Joe either takes the company to market himself or partners with investment banking strategic partners.