E466: Society Brands’ “Founder to President” Approach in Aggregating Ecommerce Businesses

Society Brands CEO Michael Sirpilla explains why the company’s founder-centric approach to aggregating is a more lucrative and fairer offer to online entrepreneurs.

 

Being the sentimental guy that I am, I’ve always found it a little disheartening how swift it is for entrepreneurs to sell and turn over their businesses to aggregators.

 

However, Society Brands strategy is more of a collaborative effort than a one-and-done business transaction. It’s a concept I can definitely get behind.

 

Unlike many roll-ups where the seller relinquishes full control of the company after a certain period, Society Brands encourages founders to stay on and help steer the ship.

 

Michael (Sirpilla, not Jackness), who took over the company as CEO in January 2022, describes Society Brands as “if an aggregator and an FBA mastermind had a baby.”

 

This strategy offers a win-win scenario for the seller, giving them an opportunity to take an offer, continue to manage the business as it grows, and then fully exit at a higher level down the line.

 

Check out the highlights from this episode:

 

Timestamps:

• Intro to Michael and what Society Brands is all about - 3:29
• Why it helps to keep founders onboard - 7:33
• Society Brands’ valuation multiples -10:52
• The “founder to president” transition - 13:17
• How long the transition process takes - 16:29
• Society Brands’ criteria for acquiring businesses - 19:49
• What’s happening in the aggregator space? - 21:34
• Areas where aggregators could succeed or fail -  25:23
• How to contact Society Brands - 27:53

Michael, thank you for your time. I look forward to doing a followup on this conversation a year or two from now and see how the aggregating space would look then.

 

If you have a business for sale and want to find out if Society Brands is a good match, head over to their website and schedule a call. You can also reach out to Michael on LinkedIn.

 

If you enjoy our podcast, feel free to leave us a review on iTunes. Happy selling and we’ll see you in the next one!