Jeff DeGarmo Exit Story After Selling a 20-Person Agency for 5.5x EBITDA
- Kyle Winder
- May 12
- 2 min read
If you’re building a service business and want to know what a normal exit looks like, this episode is worth your time.
About the Episode
Most stories we cover involve eye-popping multiples or headline-making exits. They’re fun—but not always realistic.
Jeff DeGarmo’s story is different. No private equity windfall. No tech hockey stick.
Just a well-run, 20-person service business built over 16 years and sold for a solid 5.5x EBITDA.
In this episode, you discover how to:
Structure a multi-partner business for an exit
Move from marketing budgets into operational spending
Navigate conflicting goals between co-founders
Use recurring revenue to create financial stability
Avoid getting burned in an earn-out
Sell to a sophisticated acquirer without losing your shirt
Exit without fireworks—and still win
If you’re building a service business and want to know what a normal exit looks like, this episode is worth your time.
About Our Guest
Jeff DeGarmo
Jeff DeGarmo is a seasoned entrepreneur, franchise consultant, and business broker with over 30 years of experience in leadership and business development.
A U.S. Navy veteran and former Naval Flight Officer, Jeff transitioned to entrepreneurship by co-founding a web development firm that grew into a full-service ad agency, which he successfully sold to a public company.
He later owned and exited a TSS Photography franchise and now serves as a Senior Associate with ValueCap Inc., helping business owners navigate valuations and exits.
Jeff also supports aspiring entrepreneurs through J DeGarmo, LLC, offering franchise consulting and business coaching.
An Ironman triathlete and certified fitness coach, Jeff brings energy and discipline to every venture he takes on.
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.
Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up.
It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.
Do you own a business you could sell? Find out by taking the 13-minute Value Builder Score questionnaire..
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