How can founders improve their position when selling a company?
Short answer: Samantha said giving the first buyer a first look helped build the relationship, while the other buyer gave her another path to a sale.
At a Family Office Club event, Richard C. Wilson introduces Michael and Samantha, founders discussing their ATM company and its exit (0:02).
Samantha on a partial or full sale
Samantha said to start by deciding what outcome you want. She and Michael had considered selling part or all of the company before they were ready to sell (5:07). (at 5:07)
Samantha on approaching two buyers
Samantha said she had softly floated a sale to people in the industry over time. When ready, she told one potential buyer they had first look, then approached another (5:36). (at 5:36)
Samantha on tailoring her pitch
Samantha said she kept both buyers in play after they floated low numbers. She presented the company to each based on what that buyer wanted from a purchase (6:31). (at 6:31)
Samantha on competing buyers
Samantha said the industry was entering another round of mergers and acquisitions, and she worried they might not have a buyer if they waited. She said she sold from a position of strength and let two potential buyers compete (8:18, 8:45). (at 8:18)
"keeping them both in play and knowing how to sell my company to each one of them when the outcome for each of them was different."
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Igor Olenicoff: Learn the business from the ground up. A job at a builders hardware store taught Olenicoff about building materials and techniques. It also built an affinity for real estate.
- Tony Robbins: Think like an owner. His biggest turning point was moving from operator to owner. An operator tries to supervise everything and cannot scale.
- Bobby Castro: Change the strategy to scale. Bobby says that to scale a business, everything has to change. He suggests asking whether the business is scalable, whether it offers a solution and whether it is disruptive.
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Frequently asked questions
How can founders improve their position when selling a company?
Samantha said giving the first buyer a first look helped build the relationship, while the other buyer gave her another path to a sale.
Why did Samantha sell within the industry?
Samantha said she wanted to be done, so getting out was the goal. She said they sold within the industry rather than to a private equity firm (15:14).
What helped Michael feel ready to sell?
Michael said their investments were producing enough passive income to cover their lifestyle, so they did not need the sale proceeds to support it (8:18).
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.