Why I sold my SEO agency — Kyle Roof // PageOptimizer Pro (POP)

Show Notes

• 02:09
  How Kyle got started in SEO

  Kyle and his brother started a web development and design business in India, but due to unforeseen legal issues, Kyle's brother was forced to return to the US. To retain clients, Kyle had to quickly adapt and learn SEO.
• 06:09
  Starting an SEO agency

  After working on several SEO projects with his business partner, they decided to start an international SEO agency. The agency had offices in Melbourne, Berlin, and San Francisco.
• 08:11
  When Kyle knew the business was legitimate

  Kyle realized the business legitimacy when he and his business partner were able to take monthly salaries regardless of whether they lost a client. Achieving financial stability for the business allowed them to make better decisions and not live month-to-month.
• 10:00
  The benefits of switching to longer

  When they moved from monthly contracts to longer-term contracts, they increased their profit margins. Ultimately, clients who signed those longer-term contracts were able to provide the same value as two to three of their month-to-month clients.
• 11:15
  Building a scalable and saleable SEO agency

  Kyle and his business partner built the agency to the point where they were able to remove themselves from day-to-day operations. A key factor in being able to sell an agency is the ability for it to not only survive but grow when the original owners are no longer there.
• 15:19
  The process of selling an agency

  PageOptimizer Pro used a broker to navigate the process, field offers, and negotiate on behalf of the company during the sale process. When the company was listed for sale, they waited a few months to accept offers to understand how people were looking at their company.
• 18:29
  Dealing with potential buyers

  Potential buyers will submit a letter of intent broadly stating what their offer is and the terms of the deal. Buyers are mainly concerned with the sellers discretionary earnings and most agencies get between two and 2.5 seller discretionary earnings.
• 20:30
  Determining the right time to sell a company

  It is best to sell a company when it is on an upward trajectory rather than when it is declining. During negotiations, the value of the company may continue to rise and the seller may be able to negotiate better terms such as a larger equity stake.
• 22:18
  Navigating clawback terms during the sale of a company

  The total value of the deal is divided into cash, escrow, and equity for the new company. Escrow is held as a safety measure for the buyer in case certain conditions are not met during the transition period.
• 23:16
  What Kyle is doing now that hes sold his company

  Kyle and his wife plan to take trips to places like Borneo and Malaysia. Hes also considering taking his son to Egypt to tour the tombs and treasures.