Remote Executive Coaching Firm Sold for $2.6M After 4 LOIs
Rachel Horner
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2 min read
About the Business
Industry: Professional Services – Executive Coaching & Leadership Development
Location: Remote (Southeast-based, clients nationwide)
Size: $1M–$1.5M in annual revenue, $750K–$1M in cash flow, two managing partners plus a bench of affiliate coaches
Sale price: $2,625,000
Listing to signed LOI: 224 days
Signed LOI to close: 64 days
The Challenge: Finding a Buyer to Take It to the Next Level
The two managing partners were approaching retirement with an established, referral-driven book of corporate clients. They wanted a buyer who could keep growing the firm.
“Baton was a true partner in the sale of our company. Of course, we didn't know what we didn't know. With Baton's guidance we were able to accelerate our understanding and decision making.”
224 Days to a Signed LOI: How a Deep Buyer Pool Produced a Strategic Fit
What happened at every stage
Valuation: Baton valued the firm on its trailing-twelve-month results, and it sold at 3.5 times cash flow.
Buyer Outreach: More than 600 buyers viewed the listing and over 200 opened the data room. Three buyer meetings were on the calendar in the first week, and the partners met 19 buyers in all.
Offer Selection and Negotiation Support: Four buyers submitted LOIs. The partners signed with a strategic buyer building a leadership-advisory platform, who had first met them months earlier.
Diligence and Closing Support: The Baton advisor ran weekly check-ins across buyer diligence, financing and legal, and briefed the SBA lender on the firm's revenue model in advance. The deal closed 64 days after the LOI, four days ahead of the bank's target date.
The Results
The buyer founded her own coaching and training firm and is rolling up leadership-advisory practices; she runs the combined business and is looking for more acquisitions. Through Baton's process, the business:
Sold for $2,625,000 in an SBA-financed deal
Drew 4 LOIs after the partners met 19 buyers
Closed with $1,968,750 in cash at closing (an SBA 7(a) loan plus buyer equity) and $656,250 in seller financing
What's next for the owners?
The partners are stepping toward retirement, and at least one partner keeps coaching as an independent contractor.
Advice and Lessons for Future Sellers
Meet a lot of buyers. Nearly 20 buyer meetings gave the partners a real choice among four LOIs.
Stay in touch with early prospects. The winning buyer first met the partners months before she made her offer.
Prepare your lender early. Briefing the lender on the revenue model up front kept the SBA loan on track.