This is my presentation on buying and selling businesses given at the Internet Marketing Party in December 2018.

1. © 2018 Roland Frasier
Business Growth In 5
Toasts
IMP December 2018

2. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
An Extra
30 Years

3. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
TOAST: To an extra 30 years
of income!
TAKE A DRINK

4. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
Grow
Faster

5. © 2018 Roland Frasier
CORE
BUSINESS
MEDIA
IP
SERVICE
VENDORS
PRODUCT
VENDORS
TEAM +
RESOURCES
SUPPLY +
DISTRIBUTION
IMP December 2018

6. © 2018 Roland Frasier
IDEA
INCUBATOR
MEDIA
IP
SERVICE
VENDORS
PRODUCT
VENDORS
TEAM
SUPPLY +
DISTRIBUTION
IMP December 2018

7. RolandFrasier.com WAR ROOM 10/18
CORE BUSINESS
MEDIA
__________
__________
__________
__________
__________
IP
______________
______________
______________
______________
______________
RESOURCES
_________________
_________________
SUPPLY + DIST.
_________________
_________________
SERVICES
__________
__________
__________
__________
__________
PRODUCT
__________
__________
__________
__________
__________
M =
___
M =
___
M =
___
M =
___
M =
___
M =
___
M =
___

8. RolandFrasier.com WAR ROOM 10/18
CORE BUSINESS
MEDIA
__________
__________
__________
__________
__________
IP
______________
______________
______________
______________
______________
RESOURCES
_________________
_________________
SUPPLY + DIST.
_________________
_________________
SERVICES
__________
__________
__________
__________
__________
PRODUCT
__________
__________
__________
__________
__________
M =
___
M =
___
M =
___
M =
___
M =
___
M =
___
Affiliates, Customers,
SOPs, Ops/Dev Team
Manufacturer, Supplier
Distributor, Retail Site
Website
Blog
Facebook Group
Instagram Page
YouTube Acct.
Financial
Business
Publishing
Advertising
Brokerage
Patent
Customer List
Trademark
Software
Copyright
Related
Upsell/Downsell
Cross-Sell
Substitute
Complementary
M =
___

9. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
TOAST: To doubling your
business in 2019!
TAKE A DRINK

10. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
Nothing
Down

11. © 2018 Roland Frasier
How To Buy Businesses For
Nothing Down
IMP December 2018
Owner Carry
Earn-Out
Swaps
ABL
Split Equity
SLiP
Base-Line
Pipe Wrench

12. Buy A $25M Company For $0
$25M Ask For Established Major Media Brand
$10M For 75% Instead Of $25M For All
$2M Down + $8M Financed From Cash Flow
$2M Sell 15% To Non-Competing Partner
Own 60% For $0 Out Of Pocket
© 2018 Roland Frasier IMP December 2018

13. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
TOAST: To buying your next
business for $0 down!
TAKE A DRINK

14. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
Dancing
Bears

15. Income
© 2018 Roland Frasier Opportunity To Exit
SANDBOX
LI-LO
Low Income
Low Exit Opportunity
DANCING BEAR
HI-LO
High Income
Low Exit Opportunity
GRAIL
HI-HO
High Income
High Exit Opportunity
RUNWAY
LI-HO
Low Income
High Exit Opportunity
WAR ROOM OCT 2018

16. “Quadrants Create Decision
Points To Reposition Profit
Centers For Value”
© 2018 Roland Frasier IMP December 2018

17. Income
© 2018 Roland Frasier Opportunity To Exit
SANDBOX
LI-LO
Low Income
Low Exit Opportunity
DANCING BEAR
HI-LO
High Income
Low Exit Opportunity
GRAIL
HI-HO
High Income
High Exit Opportunity
ASCEND
RUNWAY
LI-HO
Low Income
High Exit Opportunity
EXIT
ASCEND
ASCEND
STOP ASCEND
STOP
IMP December 2018
STOP

18. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
Toast: To More Grails +
Fewer Dancing Bears!
TAKE A DRINK

19. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
Exit
Bigger

20. Revenue Multiples By Industry 2018
Source: Stern.NYU.edu
Industry
Determines
Valuation
What Business
Are You In?
What
Valuation?

21. Revenue Multiples By Industry 2018
Source: Stern.NYU.edu
Choose High
Multiple
Industries!
Avoid Low
Multiple
Industries!

22. © 2018 Roland Frasier
Reposition Towards The
Highest Exit Multiple
IMP December 2018

23. RolandFrasier.com WAR ROOM 10/18
CORE BUSINESS
MEDIA
__________
__________
__________
__________
__________
IP
______________
______________
______________
______________
______________
RESOURCES
_________________
_________________
SUPPLY + DIST.
_________________
_________________
SERVICES
__________
__________
__________
__________
__________
PRODUCT
__________
__________
__________
__________
__________
M =
2-5x
M =
1-2x
M =
31x
M =
.9x
M =
1-3x
M =
2-8x
M =
1-3x
Affiliates, Customers,
SOPs, Ops/Dev Team
Manufacturer, Supplier
Distributor, Retail Site
Website
Blog
Facebook Group
Instagram Page
YouTube Acct.
Financial
Business
Publishing
Advertising
Brokerage
Patent
Customer List
Trademark
Software
Copyright
Related
Upsell/Downsell
Cross-Sell
Substitute
Complementary

24. © 2018 Roland Frasier
Increased Valuation From
Repositioning The Business
IMP December 2018
2014
Publishing
Multiple = .91
2018
REIT + Software
Multiple = 7.73

25. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
Assume Exit @ 7X Multiple
684%

26. © 2018 Roland Frasier IMP December 2018© 2018 Roland Frasier IMP December 2018
TOAST: To bigger exits!
TAKE A DRINK

27. © 2018 Roland Frasier
THANK YOU
Slides Available @
SlideShare.net/RolandFrasier
IMP December 2018