12: Lessons from Four Exits: How Pete Martin Built, Scaled, and Sold Without Regrets
Pete Martin, 6X Founder, Author of Scale Up Faster
In this episode of From Angel to Exit, Bruce Eckfeldt welcomes seasoned entrepreneur Pete Martin, who shares the compelling story of his entrepreneurial path, marked by four business exits—including a landmark 12x EBITDA sale to KPMG with no earn-out. Pete, whose family roots run deep in entrepreneurship, offers candid reflections on early mistakes, such as a rushed car leasing venture and the impact of poor financial oversight he witnessed in his father’s business.
Pete discusses his rise through IBM and SAP before founding a consulting firm within the SAP ecosystem, later expanding into business process outsourcing and software. He emphasizes the importance of designing businesses from the outset with a clear cultural foundation, citing a "manifesto" he and his partner used to align employees and customers around shared values. This values-first strategy not only shaped hiring and client selection but also solidified internal culture—leading to long-term success and integrity-based decisions, like turning down a $15M/year client due to poor cultural fit.
When it came to preparing for exit, Pete pulled from hard-earned experience: getting the business owner out of the operational core, instituting robust financial controls, and intentionally building strategic partnerships with potential acquirers. His clean financials and aligned business model made his company an attractive acquisition, culminating in a lucrative, founder-free deal with KPMG. He also shares insider tactics, like keeping multiple suitors "in play" during negotiations—even after some dropped out.
Today, Pete runs AskMyBoard, advising B2B services and tech companies on scaling and exits, and leads a growth consulting business inspired by his book Scale Up Faster, focused on helping founders grow without external capital. His episode is packed with actionable wisdom for any founder-CEO looking to build with an exit in mind.
Key Takeaways
Design your business to function without you to enable a clean exit.
Culture alignment with employees and clients directly impacts scalability.
Strong financial controls are critical—reviewed and audited books build buyer confidence.
Pre-exit partnerships with potential acquirers can significantly boost valuation.
Declining misaligned clients reinforces culture and attracts better opportunities.
Prepare for the worst in partnerships with clear buy-sell agreements.
Retention plans and bonus structures smooth transitions during acquisitions.
Non-founders driving revenue make earn-out-free deals possible.
Contact Information:
pmartin@askmyboard.com
