Over 2X
Valuation
Solid results, real value. See how this Salon and Spa achieved a high-value exit through expert planning and negotiation.
Valuation
Offer
Exit Timeline
A family-owned environmental services company felt that they weren’t reaching its maximum potential. Through the exit assessment, their certified Exit Factor consultant was able to determine that they’re financials sought improvements, and they faced client concentration issues. Just twelve months into the EF3 exit strategy program, they were able to organize their finances and have smooth operations moving forward.
Their Goals
Despite a solid business model, several key challenges were preventing a successful exit:
Bookkeeping for this business was loose, with personal expenses and outside investments combined into the regular financial reports.
Although the owner had built a great team, he had a hard time delegating.
The business was heavily dependent on two core customers that accounted for more than 80% of the revenue.
In addition to the concentration, the customers were sourced through a third party and they had no direct contracts.
Despite a large and growing business, we had to take a step back in order to move forward:
The owners were anxious to exit but decided to invest time and energy to maximize their exit.
We advised to restate financials for the last five years to present a clean picture.
The owners formalized roles and responsibilities to clearly delegate.
The owners purchased a new building in order to expand for growth, we help with budgeted and financing advice.
The business continues to grow and diversify their customer basis to increase their value.
Realizing that their business could be worth much more, they reached out to Exit Factor for help. Through our Exit Assessment, we identified areas that needed significant improvement. The first step was cleaning up the financials. Through the EF3 Program, we helped them untangle their multiple entities and investments, organizing everything for clarity and efficiency. Next, we addressed the client concentration issue by developing a new service line, which diversified their client base and significantly reduced their risk.
At Exit Factor, we’re not just your advisors—we’re your partners in success. Let’s work together to unlock the full potential of your business and achieve your goals.