Built to Sell Radio Ep 504 Exit Story: One Founder’s War with Private Equity—and the $500M Ending
10 snips
Jul 25, 2025 Rich Galgano, Founder and CEO of Windy City Wire and author of 'Down to the Wire,' shares his incredible journey from launching a low-voltage cable distribution company to selling it for nearly $500 million. He discusses the struggles he faced, including a lawsuit and the complexities of business partnerships. Galgano highlights the importance of clear exit strategies and navigating private equity, revealing the emotional hurdles during negotiations. His tale emphasizes resilience, innovation, and the power of maintaining control amid rapid growth.
AI Snips
Chapters
Books
Transcript
Episode notes
Early Startup Lawsuit Battle
- Rich Galgano started Windy City Wire at age 25 while fighting a lawsuit from his former employer.
- He quickly reached $1.1 million in sales within nine months despite early legal challenges.
Choose & Plan Partner Exit
- Always set up an exit strategy or 'shotgun clause' with your business partner to avoid deadlocks.
- Choose partners wisely since business partnerships can be like marriages and must be handled carefully.
LBOs Limit Founder Independence
- Leveraged buyouts can make founders into "indentured servants" working hard for limited equity.
- PE firms use debt to finance acquisitions, limiting the founder's upside and control.
