Business Buying Academy He Sold His Business for $65 Million - And Bought It Back for $5 Million
Nov 6, 2024
David Rodnitzky, a serial entrepreneur known for his successful marketing agency, shares his incredible journey of selling his agency for $65 million and reacquiring it for just $5 million. He delves into the nuances of agency valuation, revealing how much one can sell an agency for and the importance of profitability. David discusses the significant price hikes he implemented, from $5k to $25k monthly, and the strategies he used to scale. He emphasizes the critical role of mentorship in navigating business growth and the importance of focusing on operational efficiency.
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Buying Back for a Bargain
- David Rodnitzky sold his marketing agency for $65 million, which included cash and an earn-out.
- He bought it back for $5 million plus an additional $5 million after re-selling it and forgiving a large debt.
Apple Only Hires Large Agencies
- Early in his agency career, David sought to pitch Apple but was told by their head of Google Advertising that small agencies won't be hired.
- Apple insists on agencies with at least 250 people to avoid brand risk and ensure compliance.
Bought Back Due To Buyer’s Cash Problem
- David had to buy his agency back because the acquiring company couldn't pay the earn-out due to cash flow issues.
- He secured a personal guarantee loan for $5 million to reacquire his company and keep it running independently.