Built to Sell Radio
Ep 493 Exit Story: Selling a 20-Person Agency for 5.5x EBITDA
May 9, 2025
Jeff DeGarmo, the co-founder of Cubic, shares his journey of building a 20-person marketing agency over 16 years and selling it for 5.5x EBITDA. He reflects on the challenges of transitioning from military service to entrepreneurship and navigating complex negotiations. Jeff discusses how his agency evolved from a web-focused firm to a full-service agency, emphasizing the importance of recurring revenue. He also addresses the emotional journey of selling a business and his commitment to empowering veterans in entrepreneurship through coaching and resources.
44:34
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Quick takeaways
- Jeff DeGarmo's journey illustrates the realistic complexities of selling a service business compared to glamorous media narratives.
- The unexpected interest in Cubic led to a full sale, highlighting market valuation and the challenges of transitioning to corporate culture.
Deep dives
The Realities of Selling a Service Business
Selling a service business often involves navigating complexities that differ significantly from glamorous exit stories. In this episode, Jeff DeGarmo illustrates a more realistic scenario by sharing his experience with Cubic, a marketing and web development agency he co-founded. After 16 years and significant growth, the agency was sold for five and a half times EBITDA, a respectable but not extraordinary deal. Jeff emphasizes that this experience reflects the typical challenges and outcomes faced by many service businesses rather than the high-profile exits that dominate media narratives.
