I sold my first company for $30 million
On paper it was great, but looking back on it, I f*cked up.
Knowing what I know now, I could have done way better.
How to build your business to sell:
On paper it was great, but looking back on it, I f*cked up.
Knowing what I know now, I could have done way better.
How to build your business to sell:
I was 27 when I sold the Genius Brand.
Up until then, all I knew was how to be an operator.
- 14 hour days
- No vacations
- Pouring my entire heart into building a business I was passionate about
Up until then, all I knew was how to be an operator.
- 14 hour days
- No vacations
- Pouring my entire heart into building a business I was passionate about
Selling my company wasn’t even on my radar leading up to this.
I remembered hearing Elon saying you should never build a business just to sell it & that stuck with me.
So I did what builders do & kept building
I remembered hearing Elon saying you should never build a business just to sell it & that stuck with me.
So I did what builders do & kept building
Looking back on it. The fact I didn’t anticipate to sell was what made the business so valuable in the first place.
You approach things differently when you're passionate about your brand. Its an extension of yourself.
You approach things differently when you're passionate about your brand. Its an extension of yourself.
Now typically when you’re selling your business, you’ll hire an investment banker to ‘shop’ it.
They’ll go around looking for buyers & promote your business on the marketplace
Sometimes you’ll get unsolicited offers. This is what happened to me
They’ll go around looking for buyers & promote your business on the marketplace
Sometimes you’ll get unsolicited offers. This is what happened to me
I wasn’t actively ‘shopping’ the business, but our contract manufacturer reached out & said they had an interested buyer.
I said ‘why not’ & hopped on a call. The synergy was great so we moved forward. We both signed an NDA & they started taking a deeper look at our financials.
I said ‘why not’ & hopped on a call. The synergy was great so we moved forward. We both signed an NDA & they started taking a deeper look at our financials.
A few weeks later I got an email titled “LOI”
This letter of intent laid out all the details of the deal:
- Financials
- Terms
- Target close date
This letter of intent laid out all the details of the deal:
- Financials
- Terms
- Target close date
I’ll be honest, seeing that number on paper was mind boggling.
I was so pleased with the offer that I never went out & got a professional evaluation (mistake #1)
I left a good chunk of cash on the table by not getting more data
I was so pleased with the offer that I never went out & got a professional evaluation (mistake #1)
I left a good chunk of cash on the table by not getting more data
When you’ve been in the trenches for years & finally see the end of the tunnel, you tend to make emotional decisions over rational ones.
I overlooked the implications that come when selling your business, namely the effect it has on your organization (mistake #2)
I overlooked the implications that come when selling your business, namely the effect it has on your organization (mistake #2)
I believe the reason Genius did so well was our unique leadership model.
I always put others ahead of me. I took big risk on A+ talent and gave them the room to grow. I was always the last to eat
I always put others ahead of me. I took big risk on A+ talent and gave them the room to grow. I was always the last to eat
This buyout switched the tables on my team. I was going to be the one riding off into sunset
while my team stood to benefit heavily from this as well, a lot of the weight still fell on their shoulders.
while my team stood to benefit heavily from this as well, a lot of the weight still fell on their shoulders.
So as we are going through due diligence. I’m getting burnt out. I Just want to get the deal over with. A win’s a win.
I signed the papers & boom. Multi-millionaire overnight
I signed the papers & boom. Multi-millionaire overnight
I was riding high, but the high wore off
It wasn’t until the hype of the exit wore off that I started looking back on the situation:
”How can I do better next time?”
”What were missed opportunities in the deal process?”
”How can I set my next brand up for a stronger exit?”
It wasn’t until the hype of the exit wore off that I started looking back on the situation:
”How can I do better next time?”
”What were missed opportunities in the deal process?”
”How can I set my next brand up for a stronger exit?”
After crunching the numbers, I likely could have added another $20 million to the deal if I ran it one more year
3 years & I’d be pushing a 10 figure exit.
3 years & I’d be pushing a 10 figure exit.
But that win was nice. I got my nest egg. If only there were a way I could get a win, but still keep control of the business.
(there is)
Knowing what i know now, I would have done a majority deal
(there is)
Knowing what i know now, I would have done a majority deal
Sold some of my business for the nest egg & strategic partnerships, but maintain majority ownership & control.
20%-30% to a strategic group and immediately get:
Cash
Assets/Leverage
All the VC perks
20%-30% to a strategic group and immediately get:
Cash
Assets/Leverage
All the VC perks
I have colleagues do this, all of their businesses are now worth high 9 figures.
In short, don’t build businesses to sell, but always be prepared for an exit.
Know what your options are, figure out what you truly want, and most importantly know your worth.
In short, don’t build businesses to sell, but always be prepared for an exit.
Know what your options are, figure out what you truly want, and most importantly know your worth.
I'm building a new Amazon brand in public. We hit $400k last month
If you want to follow along make sure to join the other 130k+ following me on Instagram (same handle)
If you want to follow along make sure to join the other 130k+ following me on Instagram (same handle)
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