Built to Sell Radio

U.K.-based Nathan Winch started his career as a private equity investor after selling his first company, Winch Pharma, in 2017. Since then, Winch has acquired over 20 businesses, with a focus on logistics and infrastructure companies. In the latest installment of Built to Sell Radio's Inside the Mind of an Acquirer series, you'll learn how to: Understand how an investor structures an acquisition. Build your management team to avoid an earn-out. Dodge the most common blunder made during due diligence. Avoid turning off an acquirer during the selling process. Prepare your company to be acquired.

In 2014 Tim Grassin founded Candy Banners, which designs ads that show up along the top, bottom, and sides of a website. Grassin built a remote team in the Philippines to minimize his costs. Hiring inexpensive developers allowed Grassin to charge lower rates to agency owners, resulting in rapid growth. The business had grown to over seven figures in revenue in 2020 when Grassin received an acquisition offer from one of his clients, Native Touch. The offer valued Candy Banners at around five times EBITDA, and the deal closed in 2021.

In 2015 Mike Winnet started U.K.-based Learning Heroes after recognizing that most e-learning programs were long and boring. Winnet saw an opportunity to transform the industry by creating short, engaging, animated training courses. Winnet started by trying to sell his courses to job seekers, but when his efforts failed, he pivoted to selling to companies. Instead of a few hundred dollars a year from job seekers, selling to companies meant he was getting a few thousand dollars a year. The switch from B2C to B2B worked, and in less than three years, Winnet grew his company to around £2 million in annual recurring revenue, which was when he was approached by Litmos, a learning management software provider. Winnet sold Learning Heroes to Litmos for approximately four times revenue.

In 2013 South African entrepreneur Jason Bagley started Firing Squad, a lead generation company specializing in cold emails. In 2020 Firing Squad signed an agreement to be acquired by Southern Web and was later rebranded to SiteCare. The deal was something Bagley would later come to regret.

In 2012, Patrick Campbell founded ProfitWell to help SaaS companies increase revenue and reduce churn by managing their data in a single place. After bootstrapping the business to 8-figures, Campbell decided it was time to raise money. While seeking a financial investor, Paddle approached him with an acquisition offer. Soon after, in 2022, Campbell sold ProfitWell to Paddle for over $200 million.

Ed Buckley started Peerfit, which allows companies to offer fitness classes as part of their employee benefits package. The company grew to more than 150 employees before receiving an acquisition offer for almost $100 million from a major fitness brand widely reported to be Peloton. As part of the deal, Buckley retained some of the IP, which, in a strange twist, he was able to sell in another eight-figure exit months later.

In 2012, Ryan Coon started Rentalutions, a platform to help landlords manage and communicate with their tenants more effectively. The business showed steady growth, but Coon wasn't satisfied. Five years in, Coon rebranded the company to Avail and focused his marketing to target DIY landlords with under ten rental units to manage. The changes proved successful as Coon grew the business to around $7 million in revenue before selling to Realtor.com in 2020 for approximately five times revenue.

When Jodie Cook started her social media agency, nothing happened without her involvement. Desperate to free herself up from the minutia of running her company, Cook started to systematize her business with Standard Operating Procedures (SOPs). After a few missteps, Cook mastered the art of delegation.

In 2016, Ryan Kulp launched Fomo because he saw marketers using aggressive popups on their websites. Kulp reasoned that if he could show other people were shopping and interacting with a site, it would give new visitors confidence in the company. Fomo allows businesses to show off real-time customer interactions (purchases, opt-ins, even pageviews) with a line of code the company installs on their site. Kulp led Fomo to around $1 million in Annual Recurring Revenue (ARR) before deciding to step down as CEO in 2020. Two years later, an acquirer approached Kulp about acquiring Fomo. Initially, he wasn't interested, but after some soul-searching, Kulp decided to sell Fomo to Relay Commerce in a lucrative exit.

The economy has been a roller-coaster over the last quarter. In this special episode of Built to Sell Radio, John Warrillow reveals the downside of trying to time the market and shares four alternative ways to know when to sell.

Rory Fatt began his entrepreneurial journey running marketing seminars for restauranteurs. After several owners approached Fatt to do their marketing for them, he decided to launch Royalty Rewards in 2005. The business was a multimedia marketing platform that helped small businesses market their products and services by rewarding loyal customers. The company took off, hitting just over $2 million in revenue in its first year. Inspired to achieve financial freedom, Fatt began to explore selling his company. In 2022, he accepted an offer from Schianti Partners that would set his family up for life.

Jeremy Nagel started his entrepreneurial career teaching clients how to get the most out of Zoho, a popular CRM platform. Nagel began cultivating a small following on YouTube by sharing his advice for Zoho enthusiasts. Given his status in their ecosystem, Zoho approached Nagel about creating an SMS plug-in for their application to allow users to text their clients while using Zoho. Nagel developed the application while keeping his day job. Despite only dedicating one or two days a week to its growth, the feature quickly became one of the top five applications in the Zoho marketplace. Two years later, Nagel received a LinkedIn message from the head of corporate development at MessageMedia with a lucrative exit offer he could not refuse.

Touraj Parang has experienced the highs and lows of selling a company. In 2009, Parang sold his first company, Jaxtr, for pennies on the dollar. He took the lessons he learned and joined Webs.com, where he helped Haroon Mokhtazarda sell his company for over $115 million. Parang left Webs.com and joined GoDaddy as a leader in their acquisitions group, where they acquired dozens of companies during his tenure. In the latest installment of Inside the Mind of An Acquirer, Parang shares how companies like GoDaddy acquire companies.

Ten years ago, Timo Armoo was on a flight from his home country of Ghana on his way to live in a council flat in one of the U.K.'s poorest neighborhoods. Motivated to live a better life, Armoo started Fanbytes, an influencer marketing agency dedicated to connecting brands with social media influencers. The company took off. Fanbytes reached 65 employees and hit revenues of 8-figures when he decided to sell the company to Brainlabs for around 3X revenue.

In 2015, Lorenzo de Plano co-founded Solace Technologies, one of the first vape manufacturers in the United States. The goal of the business was to create a discreet vape pen that customers could use as an alternative to smoking cigarettes. The business boomed to revenue of more than one million dollars a month, but a looming threat had de Plano eyeing an exit. So, when a $15 million offer came in, he bit.

In 2007, Laura Roeder started selling online courses on how to market through social media. Her courses gained popularity, resulting in Roeder growing an email list of around 70,000 people. Inspired to further serve her customers, she decided to create social media scheduling software. It was one of the first social media planning tools that allowed you to schedule your social media content. Piggy backing off the list she had built from her online course business, the company hit $1 million in recurring revenue in only 11 months.

In 2009, Raman Sehgal started a small marketing company called ramarketing. In 2015, frustrated with the company's progress, Sehgal decided to analyze his business. That's when he discovered something interesting. Ramarketing's most valuable customers (low-maintenance, sticky, high gross margin etc.) were in the pharmaceutical industry. Sehgal immediately pivoted the company to solely serve clients in the pharmaceutical supply chain. Focusing on big pharma worked. Ramarketing grew from $500,000 in revenue in 2015 to around $10 million by 2022, which is when Sehgal accepted an acquisition offer from NorthEdge Capital of more than 10X EBITDA.

In 2001, Haroon Mokhtarzada and his brothers started Webs.com, which allowed anyone to build a professional website. Eager to grow the company, they decided to raise money from a venture capital firm – a decision Mokhtarzada would later regret. They ultimately grew Webs.com to over 50 million users and sold it in 2011 to Vistaprint for over 10 x revenue, totaling $117.5 million. Hungry to start another company and learn from their mistakes in raising money for Webs.com, Haroon and his brothers began Truebill in 2015. The business was created to help people save money by managing their subscriptions from one platform. Truebill snowballed, reaching $100 million in Annual Recurring Revenue (ARR) in just seven years. In 2022, Truebill was acquired by Rocket Companies – again, for over 10 x revenue, totaling $1.275 billion.

In 1988, Tony Falkenstein started Just Life Group, one of the first water-cooler companies in New Zealand. In 2016, Falkenstein identified the need to diversify into new service offerings and opted to start acquiring companies. Since then, Falkenstein has acquired six businesses, aligning with their overall focus of enhancing lives through healthy living and healthy homes. Just Life Group is a publicly-traded company with a current market cap of $46.799M as of June 9, 2022.

In 2015 Josh Davis and a friend, Darryl Ee, decided to start Speedee Transport, a trucking company specializing in shipping products that need to be refrigerated. Within three years of starting the business, they had grown from two to over forty-five employees, and an acquirer approached them. This kicked off an emotionally draining—and financially rewarding—journey to sell Speedee. In this episode, you'll discover how to:

In 2017, John Whiting started Digital Kryptonite with the goal to provide business owners with more leads. Helping his clients mine LinkedIn, Whiting quickly grew his company from zero to seven figures within a year. The company was seeing massive growth month-over-month when suddenly Whiting received a message from his credit card processor that his account was being shut down.

In 2019, Jonathan Shroyer, alongside his Co-Founder Scott McCabe, started Officium Labs with the goal to help clients turn contact centers into profit centers. After two years of seeing incredible growth, Jonathan was approached by three investors to acquire Officium Labs. Shroyer ultimately ended up selling to Arise for around 20X EBITDA.

What every owner should take away from Elon Musk's decision to press pause. Enjoy this special edition of Built To Sell Radio.

Eddie Whittingham started a company called The Defense Works in 2016. His idea was to provide companies with information on how to avoid getting hacked. Whittingham created a series of animated video clips explaining cyber security best practices and offered his content on a subscription model to companies. By 2020, Whittingham had bootstrapped his business to 8 full-time employees when he attracted an offer of 7 times revenue from Proofpoint, one of the largest players in the cyber security industry. Whittingham got Proofpoint up to 10 times revenue and agreed to the deal.

In 2016, James Ashford took what little was left after his business failed and invested £4,000 in developing proposal software for accountants which he named GoProposal. By 2020, GoProposal was a slick application with £1.5 million in revenue and hundreds of accountants using it. That's when Ashford agreed to be acquired for a healthy 8-figure sum.

James Ashford had a burning drive to become an entrepreneur and start a successful business. After a failed attempt to grow a marketing agency, Ashford knew that to build the business he had always dreamed of, he needed to make some drastic changes. In 2016, Ashford took what little was left after his business failed and invested £ 4,000 in developing proposal software for accountants which he named GoProposal. By 2020, GoProposal was a slick application with £1.5 million in revenue and hundreds of accountants using it. That's when Ashford agreed to be acquired for a healthy 8-figure sum.

Paul Nielsen built HomeTech, a company focused on creating healthier homes by installing skylights for natural lighting and advanced systems for better air quality. The business was generating around $1.4 million in EBITDA when an industry competitor approached Nielsen about acquiring HomeTech.

This week, we're featuring four recent guests and highlighting transferrable lessons they shared about exiting their company.

After graduating from business school, James Benham interned at one of the large accounting firms. Benham quickly realized corporate life was not for him. Instead, Benham started a business and lived on less money than he made as an intern for ten years.

In 2019, Ben Tossell was a frustrated entrepreneur, launching products nobody bought. His contacts showed little interest in his concepts but were curious about how he built his online offerings – especially because Tossell admitted he didn't know how to code.

Anna Maste built Boondockers Welcome, a kind of Airbnb for RVers, to $100,000 in Annual Recurring Revenue (ARR) when she received an offer of 3.9 times ARR. Maste was about to accept the offer when some soul searching led Maste to believe she could do much better. That kicked off a two-year journey of building the value of her business.

Imagine turning your expertise into an 8-figure exit. That's exactly what Sue Bryce did. Bryce built a $1 million photography studio in an industry where owners are often limited to low six-figure businesses that are dependent on them.

Imagine turning your expertise into an 8-figure exit. That's exactly what Sue Bryce did. Bryce built a $1 million photography studio in an industry where owners are often limited to low six-figure businesses that are dependent on them.

This week, we're back with the latest Intel edition of Built to Sell Radio. We feature four recent guests and dissect what made their companies built to sell.

Calvin Johnson built Lykki, an office supply company, to more than $7 million in annual revenue. Johnson had two divisions, one had office kitchen supplies (e.g., coffee), and the other sold office supplies. The kitchen supplies business was more attractive to acquirers than the office supplies side, so Johnson decided to separate the divisions and sell them separately.

Calvin Johnson built Lykki, an office supply company, to more than $7 million in annual revenue. Johnson had two divisions, one had office kitchen supplies (e.g., coffee), and the other sold office supplies. The kitchen supplies business was more attractive to acquirers than the office supplies side, so Johnson decided to separate the divisions and sell them separately.

Robert Glazer started an affiliate marketing agency called Acceleration Partners in 2007. Glazer never took outside capital and grew Acceleration to almost $28 million in sales before he sold a majority interest to Mountaingate Capital in 2020.

Robert Glazer started an affiliate marketing agency called Acceleration Partners in 2007. Glazer never took outside capital and grew Acceleration to almost $28 million in sales before he sold a majority interest to Mountaingate Capital in 2020.

Sandy Hansen-Wolff was a newlywed when her husband of only a few months, Randy Hansen, was diagnosed with leukemia. The doctors told Randy that one in four patients in his position succumbed to the disease. The couple scrambled to deal with the diagnosis and what would happen to Randy's feed business, which was generating revenue of around $1 million, if he were to pass. Randy died a few months later, leaving Sandy with little more than a handwritten list of his assets, including a heavily leveraged business.

Melissa Kwan and her co-founder built Spacio, a company that helped real estate agents win and manage leads that come from hosting open houses. Kwan built the company to roughly 100,000 agents using Spacio when a chance encounter at an industry conference led to an acquisition offer from HomeSpotter.

Melissa Kwan and her co-founder built Spacio, a company that helped real estate agents win and manage leads that come from hosting open houses. Kwan built the company to roughly 100,000 agents using Spacio when a chance encounter at an industry conference led to an acquisition offer from HomeSpotter.

In 2013, Kate Field started The Kombucha Shop offering home-brew kits that people can use to make kombucha. By 2018, the kombucha craze was in full swing and Field was invited to pitch her business on Shark Tank. Field asked for $350,000 in return for 10% of her company which was generating around $1.2 million per year selling kombucha kits. Field got an offer for $200,000 in cash and another $150,000 line of credit in return for 10% of her company from Barbara Corcoran and Sara Blakely, the Spanx founder who was a guest Shark that day. Despite her success on television, a series of surprising events led Field to walk away from the Shark's offer and sell The Kombucha Shop the following year. This episode is a raw account of the highs and lows of the entrepreneurial journey.

David Darmanin co-founded Hotjar, a software company that helps website developers and owners understand how their users interact with the sites they build. Darmanin and his partners bootstrapped Hotjar to around $40 million in Annual Recurring Revenue before selling it in 2021.

David Perry co-founded Gaikai, a video game company that enables popular games like World of Warcraft and Call of Duty to be played on just about any device. Perry raised $50 million through three rounds of funding and sold Gaikai for $380 million to Sony.

Anthony Fracchia built Altruis Benefit Consulting to $2.5 million in revenue when he started to get unsolicited calls from potential buyers. He initiated conversations with an acquirer only to learn they planned to gut his staff and kill his brand.

Rafael Zimberoff built ShipRush, an application that helps businesses streamline their technology, to 12 full-time employees when he sold it to Descartes for $14 million, plus a $3 million earn-out.

This week's episode of Built to Sell Radio is the Intel edition. We focus on four recent guests and highlight the strategies that made their companies built to sell.

In 2013, Jon Claydon started Streamline Marketing to help brands manage their affiliate programs. Claydon bootstrapped his business to around 30 employees but avoided hiring for some senior roles in favor of doing much of the work himself.

Prantik Mazumdar and his business partner Rachit Dayal built Happy Marketer, a digital marketing agency, to more than $10 million in annual revenue before they decided to sell to Dentsu Aegis Network. Mazumdar and Dayal agreed to sell for around 7 times EBITDA, 40% of which was paid up front with the remainder available in a four-year earn-out tied to the future profitability of Happy Marketer.

Josh Delaney started FAB CBD, a CBD e-tailer, in 2017. Delaney's Mom was his first customer, but his sales quickly went beyond family members. By 2020, through a combination of savvy marketing and good fortune, FAB CBD had risen to more than $10 million in annual sales. In early 2021, Delaney caught the attention of High Tide, a Calgary-based cannabis company that offered him $13 million in cash plus $8 million High Tide shares in return for 80% of FAB CBD (an implied valuation of $25.8 million).