Fortune 500 Companies Helped This Founder Exit
February 8, 2019 |
Want to increase the value of your business by up to 71%?
Take the 13-minute survey and get your Value Builder Score
About this episode
Subscribe:
Find out how Mitchell Reichgut built Jun Group to sell.
We know consumers have shifted their eyes from televisions to mobile devices, so how are companies raising upwards of $28 million to capitalize on this evolution?
For Mitchell Reichgut, co-founder of Value Exchange Advertising (VEA) company Jun Group, he helped create a service that has multi-national and luxury brands running to them to reach their target customers. Jun Group is a pioneer in VEA where a marketer will offer a mobile phone user access to something cool like a game or some valuable content in exchange for watching an ad.
Jun Group raised $28 million in venture financing before ultimately being acquired by Advantage Solutions last fall.
In this interview with Reichgut, you’ll learn:
- A refreshingly simple way to evaluate potential investors
- The surprisingly tough question to ask interested investors
- What to do when a partnership falls apart
Reichgut was an early pioneer in the field of Value Exchange Advertising and enabled his firm to create a unique point of difference compared to the thousands of digital advertising agencies offering a broad list of services. We’ll help you carve out your own little category of one during the Scalability Finder exercise which is module 2 in The Value Builder System™. Start right now by getting your Value Builder Score.
Our guest
Mitchell Reichgut is the CEO and co-founder of Jun Group. Prior to founding Jun Group in 2005, Reichgut led Bates Interactive, the online unit of Bates Worldwide Advertising, now owned by WPP. As General Manager/Creative Director, he helped grow Bates Interactive into a 70-person integrated unit, with clients such as EDS, Moet & Chandon, and Warner-Lambert. Before joining Bates, he served as Creative Director at Think New Ideas.Related to this topic
Drew Goodmanson started Monk Development as a custom website development shop and evolved it into a product enabling churches to establish an online presence. With more than 300,000 churches in the United States, Goodmanson’s company took off and he grew it to more than $3 million in recurring revenue per year, leveraging the Software as a Service (SaaS) business model.
Steve Huey bought The Learning House for $2.7MM in 2007 because he saw the opportunity to professionalize its sales and account management. Five years later, Huey sold the business for $27.5MM earning his shareholders an 8 to 1 return.
In 1999, Peter Kelly was at Stanford business school when he and two partners spotted an opportunity to remake an industry – used cars.
3 Ways to Untangle Yourself from Your Business
Debbie King was running on a treadmill so familiar to service company owners. Her company, Association Analytics, helped associations make sense of their member data, and she was wasting time on proposals that often did not get accepted. Then, when King did win a project, she was creating a custom solution for every job that required her to hire senior-level staff and personally get involved in client work. The model put a cap on her business, and when she reached 20 employees, she decided it was time to get out.
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.
Exit Like a Tycoon Without Losing Your Soul
In 1995, with just $5,000 in start-up capital, Ashok Vasudevan launched Tasty Bite offering ready-to-eat Indian entrees to American consumers. Twenty-five years later, Tasty Bite is America's largest brand of prepared Indian food sold everywhere, from Walmart to Whole Foods. In 2017, Vasudevan announced he had sold the company to Mars, which has a portfolio of beloved brands including everything from Uncle Ben's to Skittles.
Sixth Time’s a Charm For This Restaurant Owner
Andrew Lamppa wanted to sell his restaurant within two years of buying it, but it would take another twelve before he had something an acquirer wanted to buy.
Built to Sell News: Pura Vida Acquired For $75 Million ++
Griffin Thall and Paul Goodman, two Southern California friends traveling through Costa Rica on a post-college graduation trip in 2010, crossed paths with two bracelet artisans, Jorge and Joaquin, who were living in poverty. Jorge and Joaquin made beautiful, colorful handmade bracelets that seemed to capture the essence of their journey. Thall and Goodman asked the artisans to make 400 bracelets to take home with them.
Inside Shutterstock’s $65 Million Acquisition of FlashStock
Grant Munro started FlashStock in 2013 to help big companies produce content (photos, videos) for advertising campaigns. In 2015, Instagram exploded, and online marketers became desperate for more content, which helped fuel Munro’s business from a handful of employees in 2014 to more than 100 in 2017. That’s about when Munro agreed to sell FlashStock to Shutterstock for $65 million.
How Mainspring Went From a Valuation of 1 to 5 Times Revenue
In 2014, Hank Goddard got an offer of one times revenue to buy his software company, Mainspring Healthcare Solutions.
Why Policy Medical Got 7.2 x Revenue
Saud Juman built PolicyMedical, a company enabling hospitals to document their procedures and policies, into a software company growing 100% a year when he sold it for 7.2 times revenue. It was a remarkable exit for a business Juman started in his mother’s basement.