Most of our Built to Sell Radio episodes have been success stories but this week’s show is a cautionary tale of what happens when you don’t plan ahead. It features Dan Bradbury, a young entrepreneur who was growing a successful business right up until the day he had a cycling accident and ended up in a coma.

Bradbury made a full recovery after seven months, but his business didn’t make out as well. It suffered in his absence, and instead of committing to build it back up upon his recovery, Bradbury decided to sell it, reasoning he needed to safeguard his family’s finances should anything bad happen again. After a long search, Bradbury found a buyer but the offer he received revealed his weakened negotiating position. You’ll hear Bradbury’s cautionary tale along with:

• How to build leverage into your negotiations.
• Why you need a BATNA (Best Alternative To A Negotiated Agreement) when exiting your business.
• How you can you-proof your business.
• How you can use accretive value to your advantage.

Does your business pass the ‘hit-by-a-bus’ test?

Like Bradbury, many of us will end up in the hospital at some point in our lives. If your business isn’t able to cope without you, its value will be reduced dramatically. The Value Builder System™ is a 12-step process we use to separate you from your business, so that upon graduation you have a business that can chug along without you. A you-proofed business will be much more valuable—and garner more attractive deal terms—than if it is dependent on you. Complete the first step of The Value Builder System™ now by getting your Value Builder Score.

Click to Tweet: In Ep. 69 of @BuiltToSell Radio learn from Dan Bradbury & his cautionary tale.

To hear the entire episode on iTunes, click here and don’t forget to subscribe! You can also find us on Stitcher , Soundcloud, or anywhere podcasts are found!

At Built to Sell we’re all about shifting the balance of power from the buyer to the seller. If you support our mission, please write a review on iTunes—and if you have any comments or questions you can find us on Twitter and Facebook. Tune in every Wednesday for another episode of #BuiltToSell Radio with John Warrillow.

About Dan Bradbury

Starting with nearly $200,000 in personal debt and failing in his first attempt at an info-business, Dan Bradbury discovered Dan Kennedy and true direct-response. Within 10 months, he grew a seven-figure income, and became that year’s Infusionsoft Ultimate Marketer.

Since then, he’s built five other info-businesses, each generating from six-figures to millions in income, sold one in 2013 for a seven-figure sum, and now invests in some businesses and consultants with others, creating epic growth wherever he plies his well-evolved system.

Some Highlights of the Show

Business: Business Growth Systems

• Taught marketing to small business owners and would help build marketing systems. [3:11]
• Grew from a small training company to almost a done-for-you marketing agency … almost a hybrid. [3:30]
• The revenue model. [4:57]
• “We gradually tested … we would do the consulting [and the implementation].” [6:25]
• Revenue: £500,000 just before selling. [7:00]
• The triggering point: a bad cycling accident. [8:03]
• A business too dependent on the owner. [15:15]
• Finding and financing the acquisition of competitor. [16:38]
• The structure of the merger. [18:45]
• Exiting about just one year after the accident. [22:10]
• A potential strategic acquirer. [24:33]
• Building leverage into the negotiation. [26:45]
• Accretive value. [30:30]
• The negotiation [33:00]
• Looking for a 7-figure deal, or 5X EBITDA. [36:18]
• The earn-out: uncapped and based on the number of customers acquired. [39:05]
• The vesting schedule on the stock, the structure and its liquidity options. [43:41]
• Additional incentives in the earn-out period. [47:35]
• Find Bradbury online at DanBradbury.com. [48:00]

Are you an Exit Planner who is good – really good – at what you do?

If so, you are invited to join John Warrillow, the founder of The Value Builder System™, in this webinar on “Creating an Automatic Pipeline of Valuable Businesses to Sell: A Unique Opportunity for Exit Planners” where he discusses how your fellow advisors close the value gap and create an automatic pipeline of quality businesses to sell. During this session, you’ll learn:

• The three-step system Exit Planners use for creating an automatic pipeline of businesses to list.
• The eight key drivers of company value and the statistical impact each has on company valuation.
• How to improve the value of a business by up to 71%.

If your goal is to improve your pipeline of high quality businesses to sell, you won’t want to miss this free webinar. Register here.