The seller continued growing the business through new implementations of the technology. Over the next six months, they also bought a competitor. (Interestingly, our buyers had a chance at that business as well, but passed again because they were still nervous about the technology.)
Fast forward to January 2012. The asking price went from $950K to $1.9M because of the acquisition and overall increase in revenue. The increased asking price was justified based on performance. The happy ending is that the seller just accepted an offer for close to the full asking price.
Everyone wins in this story:
The seller had bought the business with a plan to grow it and sell it for a profit. Accomplished.
The buyer had been looking for a business for 4 years. It is a husband and wife team that really liked the clean cash flow and growth potential of the business. They had experience with the core technology and are excited to own and grow their own business. Success.
Connecting buyers and sellers so that everyone wins is what we do best. If you are on either side of that equation, we would love the chance to talk about how we can help.