Is Your Business Worth More Dead or Alive?

Kyle Winder
25 minutes ago
3 min read

About This Episode

Many often think of a “successful exit” as handing over the keys to a perfectly oiled machine—a business that is growing, profitable, and operationally sound.

But what happens when the machine starts to sputter?

What if the margins are too thin, the operations are exhausting, and you are simply burned out?

It is easy to assume that a broken business model means a worthless company. But as this week’s guest on Built to Sell Radio proves, sometimes the individual parts are worth more than the whole.

Meet Jason Patel.

Jason built Transitions Education, a college counseling marketplace. On the surface, it looked great: upper six-figure revenue and a noble mission. But under the hood, customer acquisition costs were eating his margins, and he was carrying $250,000 in personal debt to keep it afloat.

He was ready to walk away. He assumed he had zero leverage.

Then, a “Micro Private Equity” firm reached out. They didn’t want his headaches. They didn’t want his operations. They didn’t even want his business model.

They wanted his “parts.”

Specifically, they wanted his SEO ranking, his blog traffic, and his 5-star reputation. They realized they could strip away the expensive service delivery and plug his high-performing marketing assets into their own portfolio.

In this episode, Jason breaks down how he structured an asset sale that allowed him to:

Sell the high-value “parts” (marketing assets) without the operational baggage.

Avoid a grueling earn-out (because the buyer didn’t need him to run the company).

Pay off his debt and fund his next venture.

If you feel like your business model is grinding you down, this episode will open your eyes to the hidden value sitting on your balance sheet right now.

About Our Guest

Jason Patel

Jason Patel is an entrepreneur and education industry leader best known as the founder of Transizion, a nationally recognized college admissions consulting firm he built and successfully sold.

Jason launched Transizion to help high-achieving students navigate the increasingly competitive college admissions process, growing the business into a trusted, outcomes-driven brand serving families across the United States.

After scaling the company with a focus on operational excellence, systems, and high-touch service, he exited the business and now advises founders and operators on building scalable service companies, leadership, and creating long-term enterprise value.

Definitions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.

The Transfer of your Business may be the

Biggest Financial Transaction of your Life.

At Flight Plan Strategies, we utilize ExitMap® to help Business Owners understand their current level of preparedness so that they can begin the succession planning process.