In 2003, Ron Holt founded Two Maids & a Mop, a residential cleaning business. Thanks to an innovative employee bonus plan, Holt was able to grow his business to 12 company-owned locations.
That’s when a random encounter with Fred DeLuca, the founder of Subway, changed Holt’s life forever. Deluca gave Holt the inspiration and a roadmap for franchising his business which Holt used to grow Two Maids & a Mop from 12 to 91 locations across the United States and $40 million in revenue.
In 2021, eager to pursue the next chapter in his life, Holt began exploring selling Two Maids & a Mop. A short time after, JM Family Enterprises acquired the business in a lucrative deal valued at well over ten times EBITDA.
In this episode, you’ll learn how to:
Get your employees to think like owners.
Spot cities where competition is weak in your industry.
Design an employee bonus plan that virtually guarantees happy customers.
Ignite a bidding war for your company.
Choose the ideal acquirer for your business.
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More About Ron Holt
Ron Holt is the founder of Two Maids & a Mop. Two Maids & A Mop earned a coveted spot on the 2021 Entrepreneur Franchise 500 list and was named one of the fastest-growing cleaning companies in America by Inc. Magazine in 2020.
Now, Ron is the founder of Pink Zebra Moving. Pink Zebra Moving provides unique and remarkable experiences for people needing professional local moving services. A traveling circus that just so happens to know how to safely lift pianos and appliances too.
Definitions
Letter of Intent (LOI): A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicles in nature. Source.
Churn: Churn is a measurement of the percentage of accounts that cancel or choose not to renew their subscriptions. A high churn rate can negatively impact Monthly Recurring Revenue (MRR) and can also indicate dissatisfaction with a product or service.
Churn is the measure of how many customers stop using a product. This can be measured based on actual usage or failure to renew (when the product is sold using a subscription model). Often evaluated for a specific period of time, there can be a monthly, quarterly, or annual churn rate. Source.
Sellers Discretionary Earnings (SDE): Seller’s Discretionary Earnings, or “SDE”, is a financial metric used to determine the true historical benefit to the owner of a business.
Calculating SDE is a way to standardize or “normalize” a company’s earnings so it can be more accurately compared to the earnings of other companies and the industry as a whole. Source.
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