How To Sell Your Business For More (The 20% Rule)

About this episode

Most founders sell their business for less than it's worth. Not because the business is bad, but because they prepared the wrong things.In this episode of The Revenue Equation, Frederik Jakobsen (founder of Danish Lead Co, danishleadco.io) sits down with David Tobin, founder of Tobin Leff, a US M&A advisory firm that has spent 16 years helping owners of professional services, technology, and marketing communications businesses sell. Before founding Tobin Leff, David built and sold two of his own marketing agencies over an 18 year career. So he's been on both sides of every conversation in this episode.What you'll take away:- The 20% EBITDA margin threshold that separates premium exits from average ones- Why your founder salary is hiding your real margins (and how buyers see through it)- Strategic vs financial buyers, and why that choice locks you in for 4 to 6 years- The founder dependency trap that kills exit valuations even for great businesses- Pricing combined with over-servicing as the single biggest margin killer- Why M&A is about people and relationships, not just the numbers on a spreadsheetIf this conversation lands for you, subscribe to The Revenue Equation and follow Frederik Jakobsen on LinkedIn. More episodes and resources at danishleadco.io.GUEST: David Tobin, Founder of Tobin Leff (tobinleff.com)HOST: Frederik Jakobsen, founder of Danish Lead Co (danishleadco.io)CHAPTERS:00:00 - Meet David Tobin, founder of Tobin Leff02:00 - Why your "why" comes before anything else in a sale12:00 - The step-by-step process when you decide to sell15:30 - Strategic vs financial buyers, and why the choice matters22:00 - What buyers really analyse: growth, margins, dependency25:30 - The 20% EBITDA margin rule28:30 - Why founder dependency kills exit valuations32:00 - The salary trap most founders never adjust for36:30 - The biggest mistake: pricing combined with over-servicing45:00 - M&A is about the people, not the numbers48:00 - How to reach David and Tobin LeffKEYWORDS: Frederik Jakobsen, Danish Lead Co, David Tobin, Tobin Leff, M&A advisory, mergers and acquisitions, exit planning, business valuation, EBITDA margins, sell your business, B2B founder exit, marketing agency exits, professional services M&A, founder dependency, strategic vs financial buyers, The Revenue Equation podcast