Built to Sell Radio

This week, we continue our series called Inside the Mind of an Acquirer. We started this special series of interviews with acquirers because we want you to understand the perspective of the person across from you in a negotiation to buy your business. This week, we sat down with Bakari Akil, who has acquired two $30 million businesses and now teaches Cornell MBA candidates about entrepreneurship through acquisition.

Mark Ferrier founded the marketing agency TRAFFIKGROUP and grew it to over $2M in EBITDA before agreeing to be acquired by the private equity group Onex in an eight-figure exit.  Mark decided to sell when a friend revealed that most founders end up wishing they had sold 50% sooner for 25% less.

Entrepreneur Mark Ferrier shares his journey in the marketing agency world, including a $2 million lawsuit with former partners. Topics discussed include navigating partnership challenges, dynamics of majority and minority partners, complications of leaving a business, experience with different partners and corporations, protecting core aspects of a business, and understanding partnership structures in service businesses.

When Jon Cross founded Pondera Solutions in 2011, his goal was to reduce fraud in U.S. government programs like Medicaid and Unemployment Insurance. By 2020, Cross and his partners had built Pondera to more than $9 million in annual recurring revenue when they received an offer from Thomson Reuters for a reported $124 million. 

Lloyed Lobo, co-founder of Boast, discusses bootstrapping their way to a $23 million exit. Topics include: simplifying the process of applying for research and development tax credits, building influence through reciprocity, choosing growth equity funding over venture capital, negotiating deal terms and valuation, the challenges of selling equity, personal transformation, the power of community, and the importance of giving on social media.

At the age of 41, Rob Walling sold Drip, an email marketing software for enough money that he "would never have to work again". His only problem? Figuring out what to do next. In this special edition of Built to Sell Radio, we explore how to re-define your purpose and find happiness and fulfillment after you exit your business

Sarah Dusek, founder of Under Canvass, shares her journey of building a $100 million outdoor luxury empire. She discusses the challenges of fundraising, the risks involved in mezzanine debt, and the importance of finding the right partners. Dusek reflects on lessons learned, including the significance of presenting clear financial numbers and the emotional aspect of stepping down as CEO. She also highlights the impact of a norovirus on their business and the challenges faced by women founders in raising capital.

In 2015, Michia Rohrssen co-founded a SaaS business called Prodigy to help car dealerships sell online. He grew the company to $3.3M in annual revenue when he faced a difficult decision.   Rohrssen thought he could sell Prodigy for around 4-6 times revenue, but after paying off his investors, there wouldn’t be much left over for the founders. That’s when he decided to make a risky pivot to his business model. The change meant a short-term drop in Prodigy’s revenue, while also making it more attractive to strategic acquirers. Ultimately Rohrssen and his co-founder sold the smaller version of his company for a staggering $110 million, or around 65 times revenue.  

Casey Cavell has plenty of party stories: he dropped out of college to become a professional poker player, tried his hand (successfully) at buying self-storage facilities and apartment complexes, and eventually found his way to the business of baseball. More specifically, a franchised baseball academy for 5-10 year olds that he grew to five locations.   Cavell essentially managed two exits from his D-BAT Academy franchises, first selling 66% of the business at a value of $1.5 million and then unloading his remaining equity at a $10 million valuation.

In 2017, Amman Ahmed founded MusicForPets, which launched the YouTube channels "RelaxMyDog" and "RelaxMyCat." Th ese channels aim to alleviate pets' anxiety, whether due to stress or their owners' absence. Under Ahmed's leadership, the channels amassed over 2 million subscribers and generated a 7-figure profit, largely because of effective SEO. As the business saw a surge in paid monthly website subscribers, it garnered the interest of California-based hip-hop label, Create Music Group, which extended a lucrative 8-figure offer that Ahmed couldn't turn down.