As a value builder certified party, Blue Sky Exit Planning has access to the latest exclusive content from Built To Sell. Built To Sell is a podcast and content provider that works with successful entrepreneurs to provide step-by-step instructions and insights into the business selling process.
The $20 Million Mistake – Built To Sell
Rod Drury is the founder and CEO of Xero, a cloud-based accounting platform that competes head on with Intuit’s QuickBooks.
Started in 2006, Xero now boasts 700,000 subscribers and a market capitalization of almost $3 billion. Xero was picked by Forbes as the World’s Most Innovative Growth Company in 2014 and 2015.
In this episode, you’ll learn:
- How to avoid the mistake he made in structuring his earn-out, which ended up costing him $20 million.
- The definition of R&D by acquisition.
- How to use public company arbitrage to increase the value of your company.
- How to transition from offering a service to a product.
- How to get an acquirer to come to you.
- How to exhibit at a trade show if your goal is to get acquired by someone in your industry.
A Behind-the-Scenes Look at a Mini Rollup – Built To Sell 
In 2020 veterinarian Dr. Joseph Marchell started Old Brown Dog Veterinary Partners (OBDVP) after identifying a unique opportunity to do a rollup of family-owned animal hospitals.
Marchell acquired three practices for around ten times EBITDA. He then implemented a streamlined operational strategy that resulted in the sale of OBDVP less than two years later for almost three times the purchase price.
In this episode, you’ll learn how to:
- Identify a rollup opportunity in your industry.
- De-risk your business for an acquirer.
- Implement a professional management team without undermining the old guard.
- Create competitive tension for your company among acquirers.
- Utilize an audacious negotiation tactic to increase your offer.
- Avoid a slimy trick used by some acquirers to get your business for a discount.
Hacking Your Way to a $22 Million Exit – Built To Sell 
In 2015 Nick Santora founded Curricula, a cyber security awareness training program that helps companies defend themselves against hackers. Santora created fun, cartoon training videos in contrast to the dull content that existed at the time.
Companies happily embraced Santora’s approach. By 2021 he had grown Curricula to just over $2 million in annual recurring revenue when he accepted an acquisition offer from the cyber security giant Huntress for $22 million.
In this episode, you’ll learn how to:
- Know when it’s time to expand beyond your niche.
- Utilize the “free chicken” conversion method.
- Implement a freemium model that converts.
- Avoid a typical blunder made by founders when raising money.
- Choose the right acquirer for your company.
- Create competitive tension between acquirers to attract a premium offer.
Inside the Mind of An Acquirer – Nathan Winch – Built To Sell 
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.
Why Candy Banners Sold for a Mint – Built To Sell
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 this episode, you’ll learn how to:
- Build a company that can thrive without you.
- Establish trust with a team of freelancers.
- Repair a damaged relationship with your co-founder.
- Structure a favorable earn-out when selling your business.
- Avoid a tricky mistake many founders make during due diligence.
How Mike Winnet Sold His E-learning Company for Around 4-Times Revenue – Built To Sell
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.
In this episode, you’ll learn how to:
- Avoid the most common mistake made by first-time entrepreneurs.
- Utilize a counterintuitive marketing strategy to surpass your competitors.
- Position yourself in the market using a unique pricing strategy.
- Create content that wins new business.
- Strategically productize a service.
- Negotiate a higher multiple for your company.
- Sell your company without an earn-out.
A Regrettable Deal – Built To Sell
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 this episode, you’ll learn how to:
- Write cold emails that people actually open.
- Productize a service.
- Transfer your “ninja skills” to your employees.
- Increase pricing without losing your customers.
- Avoid the mistake that left Bagley with nothing.
Bootstrapping to a $200 Million Exit – Built To Sell
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 he was seeking a financial investor, Paddle approached him with an acquisition offer. Soon after, in 2022, Campbell sold ProfitWell to Paddle for over $200 million.
In this episode, you’ll learn how to:
- Avoid the biggest mistake when bringing on founders.
- Incentivize employees using a surprising method.
- Decide whether to raise money or sell your company.
- Negotiate your way to the highest offer.
- Create a competitive marketplace for your business.
- Prevent the most critical error made during due diligence.
One Company, Two 8-Figure Exits – Built To Sell
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. Buckley retained some of the IP, which, in a strange twist, he was able to sell in another eight-figure exit months later.
In this episode, you’ll learn how to:
- Start a business with friends without damaging your relationships.
- Avoid the biggest mistake entrepreneurs make when growing from 20 to 50 employees.
- Choose the most strategic investor for your business (even if their opinion of value is lower).
- Rekindle a deal that has fallen through.
- Develop a strong relationship with a potential acquirer.
- Improve a low-ball offer.
Selling Your Business vs. Getting Acquired – Built To Sell
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.
In this episode, you’ll learn how to:
- Articulate your target market to employees and customers.
- Convert free users into paying customers using one surprising method.
- Avoid the most significant mistake founders make when raising money.
- Avoid seller’s regret.
- Facilitate relationships with potential acquirers.
How to Get Your Business to Run Without You – Built To Sell
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 this episode, you will discover how to:
- Know when you’re ready to implement SOPs into your business.
- Delegate tasks to your employees without disrupting your customers.
- Create SOPs that your staff will use.
- Hire great people using an unconventional method.
- Empower your employees to create SOPs for your business.
- Implement systems that create an environment of creativity.
- Use SOPs to avoid an earn-out.
The Surprising Reason Ryan Kulp Sold Fomo – Built To Sell 
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.
In this episode, you’ll learn how to:
- Decide when to sell using Kulp’s untraditional approach.
- Start your business using the same tactic Kulp used to grow to $1m in ARR.
- Build trust with customers using the fear of missing out (FOMO).
- Market your offering using other businesses’ brand equity.
- Delegate tasks while avoiding upsetting customers.
- Avoid the biggest mistake made when goal setting.
- Identify the best acquirer for your business using one simple tactic.
How to Time Your Exit in Any Economy – Built To Sell 
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.
In this episode, you’ll learn how to:
- Calculate your Freedom Point.
- Time your exit in any economy.
- Avoid undermining your negotiating leverage when selling your business.
- Get out quickly if necessary.
- Sell a business early in its lifecycle.
How to Avoid Seller’s Remorse – Built 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.
In this episode, you’ll learn how to:
- Build a business that doesn’t rely on you.
- Successfully defend a lawsuit against your company.
- Transform your business model to prepare for an acquisition.
- Utilize one tactic to speed up the sale process.
- Avoid seller’s regret by calculating your exit number.
- Prepare for life after the sale.
Selling Your Side Hustle – Built To Sell 
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.
In this episode, you’ll learn how to:
-
- Identify new business opportunities inside pre-existing software platforms.
- Motivate your employees using an unorthodox technique.
- Build trust with your customers using YouTube.
- An innovative way to communicate with your advisor in the heat of a negotiation.
- Avoid making one of the most common mistakes owners make during due diligence.
- Leverage five-star customer reviews in a negotiation to sell your business.
6 Things to Know Before Approaching an Acquirer – Built To Sell 
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.
In this episode, you’ll learn how to:
- Avoid the most common mistake made by first-time sellers.
- Generate more cash flow for your company during a down economy.
- Develop trusted relationships with acquirers years before selling.
- Utilize one little-known trick to increase your leverage in a negotiation.
- The ugly truth behind re-trading from a seasoned buyer.
- The single biggest reason deals fall apart during due diligence.
The Unicorn Exit – Built To Sell 
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 10x 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 10x revenue, totaling $1.275 billion.
In this episode, you’ll learn how to:
- Avoid a fundraising mistake that cost the Mokhtarzada brothers close to $50 million
- Find the right senior person for your team using one interview tactic.
- Make strategic decisions that will improve your desirability in the eyes of an acquirer
- Determine if venture funding is the right decision for you and your company.
- Utilize mirroring to entice a buyer for your company.
- Prepare for a long and strenuous diligence period.
- Distinguish the difference between churn rate vs. churn curve.
- Maximize the lifetime value of a customer.