This week Built To Sell Radio is featuring an interview with John Rood, who built Next Step, a test prep business that helped students prepare for the medical school admissions test (MCAT).
John Rood built Next Step to almost $10 million in revenue, with EBITDA margins ranging from 20–40% before selling to New Harbour Group, a private equity business doing a roll-up of test prep companies.
Although it was a financial windfall for John, his exit left him feeling empty inside. John drifted and ended up having a difficult time processing his newfound life, which led him to consider if other founders struggled with life post-exit.
He began interviewing other entrepreneurs who had sold and is now putting the finishing touches on a book called Beyond the Exit, which will come out later this year.
During this interview, you’ll hear John’s journey of turning a service business into a product company and get John’s findings from his research with 71 exited founders.
You’ll learn how to:
Ensure subcontractors don’t do an end run around you to go directly to your customers.
Pay yourself first.
Escape the service business trap.
Turn a service company into a subscription model.
Differentiate yourself in a crowded market.
Run a closed auction to sell your business.
Thrive in your life after you sell.
Avoid the biggest mistake founders make after they sell.
Listen Now
More About John Rood
John Rood is an entrepreneur currently leading Proceptual, a platform for AI and Machine Learning regulation compliance. Previously, he co-founded Next Step Test Preparation, growing it into a national leader in health sciences exam prep, which was acquired in 2018. He specializes in building strong teams and driving them towards success through clear strategy and operational efficiency.
Definitions
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.
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