About this episode
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.
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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