Ep 476 Exit Story: How Ben Landers Avoided an Earn-Out in His 8-Figure Sale of Blue Corona
Jan 10, 2025
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Ben Landers, founder of Blue Corona, shares his remarkable journey of building an 8-figure digital marketing agency aimed at home service businesses. He reveals how he achieved a clean sale without earn-outs, a rarity in his industry. The conversation covers his transition from corporate life to entrepreneurship, the evolution of his business model, and the importance of data-driven marketing. Additionally, Ben discusses the emotional challenges of partnerships and the misconception that wealth equates to happiness, offering deep insights into navigating business sales.
Ben Landers emphasized the importance of specializing in a niche market, focusing on home service businesses to differentiate Blue Corona from competitors.
The partnership dynamics between Ben and Bob Perini shaped Blue Corona's trajectory, illustrating the complexities of equity discussions and accountability in entrepreneurship.
Ben successfully sold Blue Corona without earn-outs by ensuring transparency in financials and focusing on clear metrics to build buyer confidence.
Deep dives
Ben Landers' Journey to Entrepreneurship
Ben Landers shares his journey from working for large corporations to starting his own digital marketing agency, Blue Corona. Initially working under a mentor, Bob Perini, in a bottled water delivery company, Ben discovered his passion for entrepreneurship while collaborating on various projects. His hands-on experience with businesses and his marketing skills led him to identify a gap in digital marketing services for home service businesses. This realization propelled him to launch Blue Corona, focusing on providing data-driven marketing solutions tailored to this niche.
The Unique Partnership Structure
Ben's partnership with Bob involved a complex equity split that raised significant challenges during its negotiation. Bob initially retained the majority stake due to his financial investment, while Ben contributed his expertise and sweat equity. After contentious discussions, they settled on an equitable 47.5% split each, with 5% going to Bob's daughter, which created a mutual accountability structure in decision-making. This arrangement helped solidify their partnership but also introduced ongoing friction over operational decisions as the company grew.
Recognizing Market Opportunities
Blue Corona initially targeted a broad audience but later specialized in home services like HVAC and plumbing to capitalize on market demand. This shift was not a deliberate strategy but rather a response to client requests seeking accurate tracking of advertising effectiveness. Ben leveraged his background in analytics to provide valuable data insights to these businesses, which differentiated Blue Corona from traditional marketing firms. This focus allowed the agency to thrive in a competitive landscape and establish enduring client relationships.
Navigating the Sale Process
When considering the sale of Blue Corona, Ben focused on ensuring a seamless transaction without earnouts, which is often uncommon in such deals. He aimed to secure a fair multiple on EBITDA based on his projections for the company's growth while engaging with various interested parties, including search funds. Throughout this process, Ben emphasized the importance of having clarity in financials and shared key metrics to build confidence in potential buyers. His preparation and strategic insights ultimately led to a successful exit without academic complications.
Life After the Sale
After selling Blue Corona, Ben experienced a mix of exhilaration and adjustment as he transitioned to life post-exit. The financial independence he sought was accomplished, allowing him to focus on personal pursuits, such as spending more time with family and engaging in hobbies like cycling. However, he also faced challenges in redefining his purpose and managing the psychological aspects of leaving a leadership role. Through ongoing connections with peers and friends from the entrepreneurial community, Ben finds meaning by continuing to mentor others and reflecting on his journey.
Ben Landers built Blue Corona, an 8-figure digital marketing agency focused on home service businesses, into a data-driven powerhouse. When it came time to sell, Ben achieved something extraordinary: a clean exit with no earn-outs, a rare feat in the service business world where earn-outs are practically the norm.
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