Avoiding Earn-Outs: Lessons from an 8-Figure Exit
“Ben Landers, founder of a marketing agency called Blue Corona, eventually sold his business while avoiding an earn out,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “Ben talks about the highs and lows in selling a business and shares insights on how businesses are valued.”
Ben Landers built Blue Corona, an eight-figure digital marketing agency focused on home service businesses, into a data-driven powerhouse. When it came time to sell, Ben achieved something extraordinary: a clean exit with no earn-outs, a rare feat in the service business world, where earn-outs are practically the norm.
Service businesses often face lengthy earn-outs that tie founders to their company post-sale, creating uncertainty and limiting their ability to move on. In this Exit Story episode of Built to Sell Radio, you’ll discover how Ben structured his deal to achieve financial independence and a complete break from the business he built.
You’ll also learn how to:
- Negotiate equity with a mentor who doubles as a business partner.
- Protect yourself from lowball offers by search funds.
- Manage the complexities of having a silent partner during critical business decisions.
- Avoid the common traps of earn-outs, even in service businesses.
- Handle the emotional highs and lows of selling your life’s work.
Ben’s candid story highlights the importance of controlling your exit strategy and negotiating terms that align with your personal and financial goals.
Tune in to learn how Ben defied industry norms to walk away with a deal that gave him the freedom to decide his next move.