Most cities face the same problem: cars that get towed and never claimed pile up in impound lots. Stan Markuze saw an opportunity. He co-founded Joyride Auto, an online marketplace that lets buyers—like mechanics, scrap yards, and hobbyists—bid on those abandoned vehicles directly from the lot.
Within two years, Joyride had become a cash-flow-positive business and was sold to a private-equity firm for seven times revenue.
In this week’s episode, you’ll learn how to:
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Identify a paper-based industry ready to be digitized
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Build a profitable marketplace without outside funding
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Structure equity when one founder brings the idea and capital
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Negotiate with a private-equity buyer without running a formal process
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Avoid complex earn-outs that limit control
If you’re thinking about your own exit, this episode offers a practical look at how to turn a simple idea into a lucrative acquisition.
Quote of the Week
There were four different earn-out tranches… we hit three of the four.
Deals
Nalu Medical makes tiny, battery-free implants that help relieve chronic pain using nerve stimulation controlled by a wearable device and phone app. Boston Scientific, which had invested in Nalu since 2017, bought the rest of the company for $533 million. With expected sales of over $60 million next year, the deal values Nalu at about nine times its revenue.
