Francis Farwell, founder of WinterSilks Inc., a Middleton, Wis., mail-order apparel company, planned to sell his business from the start. Based on that decision, he built the business accordingly. Instead of plowing all his earnings into growth, he made sure the company maintained a sizable free cash flow, making it more attractive to potential buyers. In 1990, Farwell sold out, pocketing several million dollars.
The trick is to not blow it and to go year by year and do what you're going to do. So I went back the next year to the bank, and of course they're sweating bullets all this time, and we did what we said we were going to do and so we asked for whatever the next number was, maybe, I'm going to guess ...(Full transcript available to logged in subscribers.).
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