Built to Sell Radio

What happens when it’s time to sell? Every acquirer looks at your business differently. In this special episode of Built to Sell Radio, John Warrillow breaks down the four most common buyer profiles and explains how each thinks about acquiring a company. Along the way, you’ll hear clips from past guests from our Inside the Mind of an Acquirer series. 

Dan Berger, founder of Social Tables, discusses his journey from a government job to building a $100 million SaaS company. He reveals the surprising math behind his exit—despite $20M in revenue, he walked away with less than $20M due to venture funding complexities. The conversation delves into the emotional toll of selling a business, the importance of belonging after an exit, and the challenges of balancing personal joy with employee loyalty. Berger also emphasizes the need for supportive networks in navigating transitions.

Adam Rossi, founder of a successful software company for law enforcement, shares his journey post-sale to SRA International. He discusses the emotional rollercoaster of selling, including feelings of identity loss and financial guilt. Rossi reflects on the challenges of transitioning into newfound wealth and the complexities of balancing personal growth with family dynamics. He emphasizes the importance of prudent financial choices and supporting individual paths for his children, all while grappling with the pressures of starting anew after a major business exit.

In this engaging discussion, Josh Payne, the Founder of Stack Commerce, shares his unique approach to building a profitable company without the usual VC hustle. He reveals how he aimed for a $50 million exit while maintaining 75% ownership. Josh dives into innovative e-commerce strategies tailored for media brands and discusses the evolution of affiliate marketing. He highlights the psychological challenges entrepreneurs face during exits and the importance of timing and valuation, all while emphasizing the journey's growth beyond just financial gains.

David Hauser, managing partner at Durable Capital and founder of Grasshopper, shares insights from his journey of selling his company for $175 million to becoming a disciplined investor. He discusses the emotional complexities founders face post-exit, emphasizing a shift in identity and purpose. Hauser critiques the aggressive buying habits of private equity and highlights his strategic approach to acquisitions. He delves into the importance of understanding seller motivations and the value of transparent negotiations in building sustainable businesses.

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.

Ryan Atkinson, who successfully sold CORE Resources to 24 Seven after previously exiting Redwood Global, shares his journey in navigating business partnerships and strategic investments. He reveals how he injected capital while taking a less active role, allowing for growth and a smooth sale. Listeners will learn about the complexities of equity splits, the emotional rollercoaster of selling a business, and the importance of strategic networking in today’s world, especially post-COVID.

Christopher Hadnagy, author of 'Human Hacking' and a negotiation expert for elite military units and Fortune 500 companies, shares invaluable insights on high-stakes negotiations. He discusses the emotional nuances between entrepreneurs and corporate buyers, emphasizing the importance of self-awareness and open-source intelligence techniques. Listeners learn to distinguish genuine offers from bad actors, master negotiation dynamics with emotional intelligence, and explore the impact of body language on deal-making.

In this engaging discussion, Andres Lares, Managing Director of the Shapiro Negotiation Institute and author of "Persuade," shares invaluable insights into mastering negotiations for mergers and acquisitions. He highlights common rookie mistakes that can jeopardize deals and emphasizes the importance of strategic preparation and understanding business valuation. Lares also delves into the psychological aspects of negotiations, the significance of pacing, and effective techniques to navigate earnouts, ensuring sellers maintain control post-sale.

In this engaging discussion, Ben Leonard, the founder of Beast Gear, shares his journey from building a $6 million strength equipment brand to selling it—and then repurchasing it after seeing it fall apart under new management. He dives into the challenges of post-sale life, revealing how decisions made by Thrasio impacted brand integrity. Ben reflects on the emotional rollercoaster of negotiations, the importance of strong partnerships, and the lessons learned from his experience, including the significance of negotiating better terms.