How to Sell a Consulting Business for 12X EBITDA (Without an Earn-Out)

Built To Sell Radio Episode # 270

Pete Martin built EntryPoint Consulting to 34 employees when he sold it to KPMG for a staggering 12 times earnings — without an earn-out.


In an industry that usually trades at low single-digit multiples, most of which is generally tied to a lengthy earn-out, Martin’s exit is an epic achievement.


In this episode, you’ll discover:

  • Two specific tactics to pull yourself out of the operations of your business.

  • How to create an “on-ramp” offering.

  • Two things Martin did to convince KPMG to buy EntryPoint without an earn-out.

  • Why you should never separate the negotiation of terms from the price.

  • How to protect yourself from a competitor posing as an acquirer to steal your employees.

You’ll also get understandable definitions for M&A lingo like:

  • Indication of Interest (IOI)

  • Downstroke

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One of the secrets to Martin’s success was that EntryPoint did not rely on him to sell or deliver their service.


If you’re wondering how dependent your company is on you, get your Hub & Spoke score by completing The Value Builder Assessment.


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