by Matt Thomas

A few weeks ago I met with a man who had recently wrapped up a surprisingly fruitful exit from the business he founded, owned, and operated for 20+ years. He was liquid and eager to deploy capital but before we dove into his opportunities for investment I asked him cautiously, “What kind of multiple did you get?” He looked both ways before leaning over the table and whispering enthusiastically, “22x!” I nearly spit my coffee out all over the table. 22x? Most business owners looking to exit can expect 2-3x, maybe 4-5 if they have carved out a niche with tremendous upside in their space, but 22x is unreal.

I peppered him with questions, wanting to know how this company in a saturated vertical was able to get acquired with that kind of multiple. Finally, I asked him what he believed was the primary contributor to his successful exit.

by Trevor Lee

The reality is that the people in an office who make the most noise tend to get the most attention. This is normal, but it’s not good.

Last week our van started squealing. It was really annoying and impossible to ignore. In fact, it consumed my attention so much that my son was halfway through a story before I even realized he was talking to me. I tried to pay attention, but the squealing relentlessly drew my attention away from what he was saying.

I had a choice. I could try to ignore the noise and go on with life as usual–hoping the van didn’t completely break down–or I could address it. Ignoring it would have consequences. First, there was clearly something wrong, and ignoring it would eventually lead to big problems. Sure, I could put off taking the van to the shop, but I would be risking bigger, and more expensive problems. The second problem with ignoring it was that I couldn’t really ignore it. Sure, I’d kind of get used to it, but until it was fixed it would always be pulling my attention away from more important things whenever I was driving. The other problem with trying to ignore it was that it would bother me even when I wasn’t driving. I’d be in a meeting or wake up at night and think about what I should do–how long I had until it really blew up. It might not cause me huge amounts of anxiety, but it would still be there, distracting me, even when I wasn’t in the van.

These same dynamics are in play when there is a “squeaky wheel” in the office.