Built to Sell Radio

Alex Bean, founder of Divvy, sold his company for $2.5 billion but found himself grappling with unexpected emotions post-sale. He discusses the misconceptions of happiness tied to financial success, emphasizing the emotional complexities of navigating life after a monumental exit. Bean shares insights on raising capital versus maintaining control, the significance of teaching kids about fiscal responsibility, and the importance of redefining success beyond mere wealth. His journey highlights that true fulfillment comes from meaningful relationships and purpose.

Tim Schumacher, co-founder of SaaS Group and a seasoned expert in acquisitions, shares invaluable insights on the mindset of an acquirer. He explains Peter Thiel's 'zero to one' versus 'one to ten' concept and its implications for business strategy. Discussing the emotional journey of second-time founders, he emphasizes the importance of product-led growth in SaaS. Tim also tackles the financing and structural nuances of tech acquisitions, highlighting the critical role of cultural fit and transparency to ensure successful deals.

Jim Sebenius, founder of the Negotiation Unit at Harvard Business School, reveals powerful strategies for maximizing business sales. He emphasizes the diverse traits of effective negotiators, including authenticity and self-confidence. Sebenius introduces the '3D negotiation' framework, marrying tactical skills with strategic deal design. He discusses the art of generating competition among buyers and the critical nuances of earnout deals. With insights backed by interviews with global dealmakers, his advice is a treasure trove for aspiring sellers.

Matt Matros, the founder of Protein Bar, discusses his journey from a single smoothie shop to a $44 million company. He warns entrepreneurs about the hidden risks of rolling equity when selling to private equity, sharing personal insights on maintaining control during expansion. Matt reflects on the emotional challenges of becoming a minority shareholder and the complexities of valuation negotiations. His cautionary tale emphasizes the importance of understanding liquidity preferences and choosing the right partners for sustainable growth.

William Brown, an entrepreneur thriving in Dubai, shares how he turned a $50 trading advice document into a multi-million dollar online education business. He discusses the surge in day trading during the pandemic that fueled his growth and his transition from one-off sales to a successful subscription model through automated webinars. Navigating the complexities of selling his business, he reflects on the emotional journey of the acquisition process and emphasizes the significance of authenticity in information products.

In this insightful discussion, Christopher Vollmond-Carstens, Chief M&A Officer at Ntiva, reveals the secretive world of corporate mergers and acquisitions. He shares his journey from academia to leading significant deals and the common misconceptions surrounding the M&A process. Listeners learn how strategic planning, personal relationships, and strong financial metrics play pivotal roles in successful acquisitions. Christopher also emphasizes the importance of trust in negotiations and how effective communication can reshape deal outcomes.

Kristi Herold, founder of Jam, a Toronto-based company that connects people through recreational activities, shares her insights on small business acquisitions. She dives into the evolution of her company from local leagues to national expansion, revealing strategic mergers and pandemic adaptations. Kristi discusses the emotional journey of balancing ambition with comfort, and offers nuanced strategies for navigating acquisitions in the sports sector. She emphasizes the importance of valuing relationships and understanding business valuations for successful negotiations.

Jeff Archibald, founder of Paper Leaf, shares insights on turning a 3x EBITDA offer into 5x through creative earn-outs. He discusses declining projects without losing customers, focusing on simplicity in business, and navigating missed acquisition opportunities. Jeff also delves into the successful sale of his service business, highlighting the importance of negotiation strategies and post-acquisition commitments.

Nicole Osmer, founder of Health+Commerce, shares insights on growing her agency from $1M to $10M in revenue, handling acquisition offers, minimizing re-trading, deciding when to sell, and communicating with employees during an acquisition. She also discusses the dynamics between M&A professionals and lawyers, emotional highs of selling a business, and future acquisitions in healthcare services.

In this week's episode of Built to Sell Radio, John Warrillow interviews Michael Lynch, the creator of TinyPilot, a hardware device that allows users to remotely control their computers without installing any software. Like most small companies, TinyPilot was a Main Street business with around $1 million in revenue and roughly $250,000 in profit, so Michael's story is a revealing snapshot of a typical exit for the majority of small businesses