Practical Founders Podcast #133: Bootstrapper Sells School Fundraising Platform to PE Investors - Howard Gottlieb
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Feb 28, 2025 Howard Gottlieb, founder of Read-A-Thon, launched a reading-based fundraising platform that has helped over 4000 schools raise over $30 million. He discusses the explosive growth during COVID, which propelled his company from 40% to 150% yearly growth. Howard shares insights on selling to private equity, focusing on effective negotiation and the emotional challenge of transitioning leadership. He also reflects on the vital blend of luck and hard work in entrepreneurship, emphasizing the importance of humility and strategic wealth management in his journey.
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Deal Fell Through
- Read-A-Thon had a deal fall apart two weeks before closing because the acquiring company's new CEO wanted to pause.
- This ended up benefiting Howard Gottlieb, as a later deal proved more lucrative.
LOI is Meaningless
- Be cautious of Letters of Intent (LOIs) during acquisitions.
- They are not binding and the final sale price is often negotiated later.
Reinvest Profits
- Prioritize reinvesting profits to improve technology and marketing.
- This sets up better long-term growth and a higher valuation upon exit.
