How we Closed a $5.5M Commercial Flooring Deal at 4.3x EBITDA with Rolled Equity in Just 5 Months

Overview Industry: Digital Marketing (Financial Sector / PR & Content) Founded: 2016 Employees: 30 (full-time, part-time, and contractors) Transaction Year: 2022 Adjusted Earnings: $382,000 Asking Price: $1.2M (3.14x multiple) The Situation The seller founded the agency in 2016 and successfully scaled it from the ground up to a team of 30. By 2020, the business was performing well and positioned for further growth. After conducting a detailed growth analysis with her business coach, the seller mapped out a clear path to the next stage—complete with the required time, capital, and staffing. While the opportunity was attractive, she ultimately decided she did not want to take on the demands of scaling the business further. Like many entrepreneurs, she recognized her strength was in building and growing businesses—but not necessarily operating them at the next level. Preparation & Strategy The seller engaged us in 2021 to begin the sale process. The initial phase focused on positioning the business for a successful exit: Cleaned and normalized financials to ensure clarity and credibility Clearly defined owner responsibilities and team structure Identified the ideal buyer profile and strategic fit Developed a targeted go-to-market strategy Through market analysis and comparable transactions, we established a valuation of $1.2M, representing a 3.14x multiple of adjusted earnings. Market Response Once brought to market, the business generated strong interest: 233 buyer inquiries 152 signed NDAs 5 qualified offers This level of activity validated both the quality of the business and the effectiveness of the positioning strategy. Buyer Selection The seller ultimately chose an existing agency owner as the buyer. While several offers presented stronger financial terms, this buyer stood out due to: Relevant industry experience Complementary service offerings A clear vision for scaling the business The acquiring agency provided broader digital marketing services, while the seller’s firm specialized in financial-sector content and PR. This created a strong strategic fit and clear synergy. Deal Structure & Negotiation The accepted offer met the full asking price of $1.2M, but included a notable structure: 60% seller financing This is significantly higher than typical transactions, where seller financing more commonly ranges between 10%–20%, if included at all. The buyer’s rationale was to preserve capital for immediate growth initiatives post-acquisition. While other offers included more favorable upfront cash terms, they lacked the strategic alignment and operational expertise the seller prioritized. After extensive discussions, the seller chose to move forward based on: Confidence in the buyer’s ability and integrity Desire to see the business continue to grow Commitment to employees and clients Outcome The decision proved successful: The business has continued to grow post-sale Employees and clients experienced a smooth transition The buyer has consistently made payments on the seller note, which is now nearly paid off Key Takeaways Strategic fit can outweigh stronger financial terms Seller financing can unlock the right buyer when structured thoughtfully Preparation and positioning drive competitive buyer interest Alignment of values (team, clients, legacy) is often critical in final decision-making Testimonial From Seller "I met Matt through a successful entrepreneur at my business coaching group. She had recently sold her business and found freedom. I knew I wanted to do the same. She told me about her experience with Matt, so I reached out to him about selling my firm. To be honest, my firm was pretty unsellable at that point, but Matt spent a year with me cleaning up the books, improving the value, marketing the business and finding the perfect buyer. There were a few times I almost gave up or lowered the price, but Matt kept us on track and we found the perfect buyer and got our asking price. Matt is trustworthy, reliable, experienced and has a tireless work ethic. The most important characteristic is his calming force throughout a stressful process. I knew I could count on him and trust him to get me to the finish line. Now I have my life back and money in the bank. So thankful to have met Matt!"