342 - Alexis Grant, They Got Acquired: Secrets and Strategies for Selling a Business Every Founder Should Know

Key Takeaways Copied to clipboard!

• The true value of a business is determined by the negotiation between what the seller is willing to accept and what the buyer is willing to pay, rather than solely relying on metrics and valuations.  Copied to clipboard!
• Building leverage when selling a business is crucial, and this can be achieved by generating interest from multiple potential buyers rather than accepting the first offer.  Copied to clipboard!
• Founders should prioritize building a business that supports their life and personal goals, rather than structuring their life around the demands of their business.  Copied to clipboard!

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Selling Your First Business

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(00:00:00)

• Key Takeaway: The ultimate sale price of a business is a negotiation between the seller’s acceptable price and the buyer’s offered price, regardless of calculated valuations.
• Summary: The conversation begins with an invitation to an info session, then transitions to the host’s personal experience selling her first business, a content marketing agency, which was an ‘aqua hire’ to The Penny Hoarder.

Second Business Sale Process

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(00:59:59)

• Key Takeaway: Generating interest from multiple buyers is essential for maximizing sale price, and founders should avoid accepting the first offer without exploring other options.
• Summary: The discussion moves to the sale of the founder’s second business, a website for writers. She details running a bidding process, the importance of having a lawyer, and the realization that having multiple interested parties significantly drove up the sale price.

Building a Media Company

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(00:25:05)

• Key Takeaway: Launching a media company successfully involves building an initial audience through a landing page and leveraging existing online networks before content creation.
• Summary: The founder shares her strategy for starting ‘They Got Acquired,’ focusing on building a landing page, promoting the idea on social media, and gathering an initial email list before launching content.

Founder Mistakes and Learnings

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(00:33:19)

• Key Takeaway: Founders must ensure their financial books are meticulously accurate before entering the sale process to avoid renegotiations and potential deal collapse.
• Summary: This segment delves into common founder mistakes, including having inaccurate financial records that lead to revised offers during due diligence, and the importance of selling a business while it’s still growing, not after it has declined.