Built to Sell Radio Ep 480 Exit Story: The $80M Deception—How Kevin Wagstaff Walked Away and Won
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Feb 7, 2025 Kevin Wagstaff, co-founder of Spectora, transformed home inspections with a groundbreaking SaaS platform and navigated an intense $80 million acquisition. He shares the rollercoaster ride of negotiations, including a last-minute attempt to re-trade the deal that could have cost him millions. With his brother and an advisor's support, they stood their ground, ultimately securing a $90 million valuation from a better partner. The journey balances emotional struggles with strategic decisions, emphasizing the importance of brand integrity and personal bonds in business success.
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Nail Early Word of Mouth
- Build word of mouth by treating early customers like the only ones and implementing feedback fast.
- Exceptional customer responsiveness drove rapid referral growth in a tight niche.
High Churn Demands New Clients
- The churn rate was about 3% monthly or 36% annually, meaning a third of customers left each year.
- Sustainable growth required relentless new customer acquisition to offset high industry churn.
Industry Fragmentation Shapes Business
- Home inspection businesses are highly fragmented with many solo inspectors who do not seek growth.
- Larger companies have grown recently, allowing Spectora to win bigger, stickier customers to reduce churn.
