Built to Sell Radio

John Ruffolo, Founder and Managing Partner of Maverix Private Equity, shares his journey from accounting to tech investing. He discusses the stark differences between growth equity and traditional buyouts, highlighting how growth equity allows founders to retain control while securing liquidity. Ruffolo offers insights into how equity rollovers can fail due to aggressive cost-cutting and debt issues. He also emphasizes the importance of understanding pre- and post-money valuations and advises on leveraging debt before turning to equity for financing. A must-listen for founders!

Zain Jaffer, tech entrepreneur and co-founder of Vungle, dives into his journey from growing up in a refugee family to executing a $780M exit to Blackstone. He reveals the magic behind rewarded video ads and discusses the peculiar challenges of sudden wealth, including altering friendships and managing privacy post-exit. Zain shares candid mishaps in real estate, lessons from risky trades during COVID, and his philosophical views on wealth distribution. Now, he’s channeling his experiences into new ventures focused on AI in marketing.

Stan Marcuse, co-founder of Joyride Auto, shares his journey transforming impounded vehicle auctions into a digital marketplace. He discusses the challenges of traditional auctions and how digitization expanded the buyer base, especially during COVID. Joyride's unique business model led to impressive growth, resulting in a 7× revenue acquisition by a private equity firm. Stan also touches on his future ventures, including Ballast Cash Management, designed to optimize cash flow for businesses.

Randy Woods, former founder of Non-Linear Creations, shares his journey of building a digital agency and selling it to Valtech. He discusses making a company irresistible to acquirers, the importance of equity in deal structures, and what Valtech looks for in acquisitions. Randy highlights the role of culture in successful mergers, revealing red flags that can kill deals. He emphasizes the significance of strong relationships and transparency during negotiations, and shares insights on structuring earnouts and creating synergy post-acquisition.

Lee McCabe, a former executive at Meta and Alibaba, now advises private equity firms on modernizing value creation. He explores the demise of the traditional private equity playbook, emphasizing the shift toward operational focus driven by higher interest rates. McCabe highlights the importance of digital capabilities, sector specialization, and how firms like Thoma Bravo thrive through operator-led strategies. He offers insights on how founders can assess PE buyers and what it takes for successful digital transformation, urging them to prioritize relationships over price.

Dave Sifry, a nine-time founder known for Technorati and LinuxCare, shares his entrepreneurial journey and valuable lessons learned. He reflects on the regret of passing up a $100 million exit, the pressures of venture capital, and the risks of growth-driven strategies. Sifry emphasizes the importance of maintaining control and integrity while building companies. His latest venture, Warmstart, focuses on leveraging past contacts for new business opportunities, showcasing how innovative thinking can change the fundraising landscape.

Tad Fallows, the bootstrapped founder and former CEO of iLab, shares his journey from launching a SaaS platform for research labs to selling it for approximately six times its revenue to Agilent Technologies. He discusses the tough decision of whether to sell early or gamble on greater value, the complexities of running a banker-led auction, and why he chose strategic buyers over private equity. After his eight-figure exit, he founded Long Angle, a community to support first-generation wealth creators in navigating financial and personal challenges.

Ronan Berder, the founder of Wiredcraft, shares his journey from facing failure to building a thriving digital agency in Shanghai with 140 employees. He discusses the pivotal decision to shift from product dreams at Techstars to focusing on service, which proved to be lucrative. Berder reflects on the challenges of selling Wiredcraft for 67 million euros, including the emotional complexities and negotiation hurdles. He emphasizes the importance of documenting business processes and the lessons learned from his successful exit strategy.

The tug-of-war between sellers craving 100% cash and buyers opting for earn-outs sets the stage for intense negotiations. Delve into how manageable milestones can make cash offers more appealing. Discover the pros and cons of rolling equity, where sellers face trade-offs between potential wealth and loss of control. Learn how seller financing can enhance negotiations, offering unique benefits and risks. Navigate the complexities of these transition structures to turn challenges into opportunities.

Discover the four distinct buyer types in the world of business acquisitions. Delve into private equity's role in fueling growth and how it shapes the seller's journey. Learn about strategic acquirers who enhance value through targeted acquisitions and hybrid models that capitalize on market opportunities. Explore the intriguing rise of acquisition entrepreneurs, particularly MBA graduates, as they opt for buying over starting new ventures. Uncover various financing strategies that protect investors and preserve company culture!