Welcome back to another edition of The Wise Exit!

In today's issue, we're covering:

1. The Hidden Value of Boring: Why Unsexy Businesses Often Command Higher Multiples

2. Selling a Staffing Firm? Here's What You Must Know

3. 11 Ways to Build a Company Culture Buyers Will Pay a Premium For

4. Deal of the Week: Digital Marketing Agency

Let's dive in!

The Hidden Value of Boring: Why “Unsexy” Businesses Often Command Higher Multiples

Everyone chases shiny tech startups.

Meanwhile, "boring" businesses are quietly selling for premium multiples. After guiding hundreds of founders through exits, I've spotted a pattern that shocks most entrepreneurs. 

Here's why “unsexy” often equals valuable:

1. Predictable Revenue Trumps Growth Potential:

Buyers pay more for certainty than promise: 

• Low-Glamour Win: Commercial cleaning company with 15-year contracts sold for 9.8x EBITDA

• High-Growth Reality: Trendy D2C brand with 300% YOY growth struggled to get 6x revenue

• Buyer Perspective: "I'll pay more for $5M that's guaranteed than $20M that's speculative" 

The steadier your revenue, the more a buyer will pay for each dollar of it.

2. Proven Models Beat Innovation:

Established business models carry less risk: 

• What Works: Industrial distribution business (40 years old) with consistent 38% margins

• What's Risky: SaaS platform still experimenting with pricing and Go-To-Market strategy

• Valuation Impact: The "boring" business commanded 3x higher multiple

Buyers reward businesses with decades of proven economics over those still finding their way.

3. Acquisition Landscape Favors The Overlooked:

When everyone chases the same prizes, economics get distorted:

• Competitive Sectors: 20+ buyers for each tech company drives prices up... but terms get harsher

• Overlooked Gems: Essential service businesses attract serious buyers with cleaner deals

• Deal Structure: "Boring" businesses get more cash upfront, fewer earnouts, and better terms

 The bottom line is this:

The businesses that make headlines rarely make the best exits.

Building a stable, profitable company in an established market might not get you on magazine covers. But it could deliver a far more valuable exit with better terms. 

Sometimes the best path to wealth is the less glamorous path.

Featured Blog 📰

Selling a Staffing Firm? Here's What You Must Know

Staffing agencies require a specialized approach to valuation and sale preparation. Our latest blog breaks down the essentials:

• Valuation multiples in the staffing industry range from 2x (small agencies) to 10x (established firms)

• The 11-step process to maximize your sale outcome

• Key documentation buyers scrutinize in this people-focused business

Check out "Selling a Staffing Firm? Here's What You Must Know" on our blog for the complete guide.

M&A Tips from Brian Dukes 💡

11 foolproof ways to build a great company culture (which buyers will pay a premium for):

1. Lead By Example:

Show up early and work on hard problems. 

Want the other 10? Read the full post on LinkedIn.

That's all for this week! 

Remember, the businesses that create the most wealth for their owners often aren't the ones making headlines.

Until next time.

Best,
Brian Dukes