CASE STUDY 1: DUANE ALLMAN PRECISION MACHINING
The Operator Who Couldn’t Let Go
Duane Allman built Precision Machining from scratch in 2005, transforming a garage operation into a $4.2 million annual revenue manufacturing business. With 22 employees and blue-chip clients including aerospace and medical device companies, Duane’s technical expertise was legendary. He could troubleshoot any CNC machine blindfolded and had memorized every client specification.
By 2023, at age 58, Duane was exhausted. He worked 70-hour weeks because “nobody else understands the tolerances like I do.” When his largest client requested quotes, Duane personally reviewed every specification. When quality issues arose, only Duane could solve them. When new clients called, they asked for Duane specifically.
His accountant suggested selling. At $850,000 EBITDA, Duane expected a $3.4 million valuation using a 4x multiple. He engaged an M&A advisor who quickly identified catastrophic problems.
There were no documented standard operating procedures. Client specifications lived in Duane’s head and handwritten notebooks. The shareholder agreement hadn’t been updated since 2008 and contained contradictory buyout provisions. Corporate filings were chronically late. Duane’s son, listed as 20% owner, had never been formally issued shares. Equipment maintenance schedules existed only in Duane’s memory.
During due diligence, buyers asked, “What happens if Duane leaves?” Nobody had answers. One buyer watched Duane interrupt a production meeting three times in fifteen minutes to solve problems that should have been delegated years ago. Another buyer discovered that Duane personally approved every invoice over $500.
After nine months, Duane received one offer: $1.8 million, barely 2x EBITDA. The buyer insisted on a five-year earnout where Duane would remain full-time. The reasoning was brutal but honest: “We’re not buying a business. We’re buying access to your brain. If you leave, this company collapses.”
Duane rejected the offer, humiliated. He’d built something worth millions operationally but nearly worthless structurally. His refusal to document processes, delegate authority, and build administrative infrastructure had destroyed $1.6 million in potential value. He continued working, trapped in the business he’d built, unable to exit on his terms.
The operational excellence that built Precision Machining became the prison that confined its founder. Duane confused being indispensable with being valuable, never understanding that his replaceability was the key to his freedom. He remains there today, the highest-paid employee of his own company, with no exit in sight.
CASE STUDY 2: DAVID GILMOUR INDUSTRIAL SOLUTIONS
The Builder Who Planned His Exit
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