Influencer Marketing Pioneer Acquired By Fullscreen
May 4, 2018 |
About this episode
Subscribe:
Pete Borum practically invented the term “influencer marketing.” So how did Borum raise $15 million dollars and attract multiple acquisition offers in an industry that didn’t exist before he showed up?
Pete Borum co-founded Reelio, which is an influencer marketing platform that enables brands, agencies, and publishers to find social media influencers to endorse their products.
While Borum and his three co-founders forecasted the trend of influencer marketing, their major challenge was convincing advertisers who were used to controlling every aspect of a brand’s marketing, to turn over content creation to celebrity YouTubers, Instagrammers, and Snap Chatters.
Despite this challenge, they managed to raise $15M in capital from investors, and the company grew. Borum had acquisition conversations with several strategic buyers and was bought in 2018 by Fullscreen, which is owned by Otter Media, a joint venture between AT&T and the Chernin Group.
In this episode, you’ll learn:
- Reasons to loop in investors during the selling process
- Why having a “Best Alternative To A Negotiated Agreement” (BATNA) is an important step in the exit planning process
- How to influence the way an acquirer thinks about your company’s valuation before getting a term sheet
Borum knew that digital media was poised to skyrocket and created Reelio to meet the rising demand for influencer marketing. Recognizing the growth potential of your industry is one of the exercises from Module 2 of The Value Builder System™. Get started for free right now by completing Module 1.
About Our Guest
Pete Borum is the Co-Founder and CEO of Reelio, a data-driven influencer marketing platform that enables brands, agencies and publishers to find and work with the right social media influencers at the right price. Prior to co-founding Reelio, Borum was the Director of Communications at Revstone, where he led the brand consolidation of 18 portfolio companies in 4 countries. Before that, Borum founded Aspirént, a strategic consulting firm whose projects included planning and execution of a five-borough direct marketing strategy for Michael Bloomberg’s successful 2009 mayoral campaign.
Related to this topic
By now, you’re accustomed to hearing John Warrillow ask the tough questions.
Every month, we turn the tables and grill John on his favorite anecdotes and transferrable lessons from the latest batch of guests on Built to Sell Radio. In this episode, Dr. Jeremy Weisz gets John to reflect on what stood out, any missed opportunities, and how each story imparts the Built to Sell Methodology.
Double an Offer, Without Turning off an Acquirer
Wes Mathews built High Level Marketing, a digital advertising agency, to $6.5 million in annual revenue. The business was thriving, but when COVID hit, Mathews started to question the risk he was shouldering employing 49 people. It was around that time that Mathews received an email that would change his life forever.
Prantik Mazumdar and his business partner Rachit Dayal built Happy Marketer, a digital marketing agency, to more than $10 million in annual revenue before they decided to sell to Dentsu Aegis Network. Mazumdar and Dayal agreed to sell for around 7 times EBITDA, 40% of which was paid up front with the remainder available in a four-year earn-out tied to the future profitability of Happy Marketer.
Carrie and Dave Kerpen started Likeable Media, a social media agency, in 2006.
The business grew to more than 50 employees when the couple met for their annual partner’s retreat. The Kerpens realized their business had blossomed into a big success which they estimated was close to 90% of their net worth.
4 Big Takeaways on Building the Value of Your Company
This week, we’re back with the latest Intel edition of Built to Sell Radio. We feature four recent guests and dissect what made their companies built to sell.
How to Turn Beta Users into Customers Plus 3 Other Stories
This week, we’re featuring four recent guests and highlighting transferrable lessons they shared about exiting their company.
How to Sell a Service Business Without an Earn-Out
In 2011, Jodie Cook started an eponymously named social media agency, JC Social Media. Over the next nine years, Cook built the business up to 16 employees. Then, she decided to sell at the end of 2020 and thought her company could be worth in the 5-7 times EBITDA range.
3 Ways to Play an Industry Roll-Up
In 2013, Jon Claydon started Streamline Marketing to help brands manage their affiliate programs. Claydon bootstrapped his business to around 30 employees but avoided hiring for some senior roles in favor of doing much of the work himself.
How to Create a Bidding War Plus Three Other Lessons
This week’s episode of Built to Sell Radio is the Intel edition. We focus on four recent guests and highlight the strategies that made their companies built to sell.
What To Do When Getting Out Means Staying On
A service-based company can be a tough sell, so Eric Enge found a buyer while his best asset was still on the table: himself.
Aaron Houghton sold iContact in 2012 for $180 million. The first round of growth was financed by convertible debt, which Houghton recommends for its simplicity. Hear how he parlayed an initial investment of $250,000 into a $180 million exit.