6 Lessons Ryan Moran Learned From a Seven Figure Loss

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Please note: this episode includes language some listeners may find offensive. 

Ryan Daniel Moran built Sheer Strength, a supplements business, up to a run rate of around $10 million per year when he decided it was time to sell.

He quickly got a few offers and settled on one from a private equity group that valued Sheer Strength at $17.5 million or around five times Moran’s $3.5 million in EBITDA. Moran and his partner were ecstatic and signed a Letter of Intent, but things were not quite as they seemed. In this cautionary tale of what can happen when you sell to the wrong buyer, you’ll learn:

• Why Moran recommends going into an M&A process with your list of terms.
• Why Moran equates the selling process to a bad episode of “The Bachelor.”
• One common reason acquirers re-trade after an LOI is signed.
• The danger of taking part of your proceeds in shares.
• What happens when your acquirer goes bankrupt.
• Why Moran advises doing absolutely nothing with your money for six months after you sell.

Moran sold to a private equity group that lowered their acquisition offer after signing a Letter of Intent. This kind of “re-trading” is a classic trick used by professional buyers. You’ll get a technique for defending yourself against re-trading in The Art of Selling Your Business: Winning Strategies and Secret Hacks For Exiting On Top, which dropped yesterday, January 12th — order your copy and choose from a collection of thank you gifts.

Check out our article on Your Price. Our Terms.

And 3 Ways To Protect Your Downside In An Acquisition too.

Check out our full M&A Glossary

About Our Guest

Ryan Daniel Moran is the founder of Capitalism.com, where he teaches entrepreneurs to build businesses and invest the profits. Ryan is best known for turning a $600 investment into an 8-figure company and subsequently selling it for 8-figures. Today, his podcasts and videos have been downloaded well over 10 million times, and hundreds of successful students credit his trainings with helping them build 7-figure businesses. Ryan lives in Austin, TX where he loves to debate politics and religion, and his dream is to one day own the Cleveland Indians.

 

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