The $20 Million Expiry Date
March 23, 2016 |
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:
In eight years Ryan Born built Audio Micro into an Inc. 500 company. Born went on to sell it for more than $20 million in 2014 – a deal that only happened because he put an expiry date on the “no shop” clause on his Letter of Intent.
One of the reasons Born was paid handsomely for his start up was the positive cash flow model he had created. Instead of buying media rights and reselling them, he sold the rights first and then paid the content owner 30 to 120 days later. This “float” allowed him to keep more equity for his eventual exit. Cash flow is our focus in Module 10 of The Value Builder Engagement. Get started by getting your Value Builder Score™ now.
About Our Guest
Ryan Born is a media entrepreneur best known as the founder of AdRev/AudioMicro Inc., a digital rights management and content licensing network, the majority of which was acquired by Zealot Networks in 2014-2015 for $20 million. AudioMicro Inc. ranked as the LA’s fifth fastest growing media company in the 2015 Inc. 500 list (#162 overall). Previously, Born was an investor in and VP of Finance for WireImage (acquired by Getty Images in 2007 for $208 million), and he was an angel investor in NewCondosOnline and Internet Marketing SEO, Inc. He has been a guest lecturer at Emory University, UCLA, UCSB, Loyola Marymount and numerous industry conferences and events.Related to this topic
How to Double Your Take From a Sale Without Being a Jerk
David Jondreau built American Sign Language, a company that supplied interpreters on contract, to $2 million in annual revenue when he decided it was time to sell.
What to Do When Your Partner Is Not Ready to Sell
Tyler Jefcoat co-founded Care to Continue, which provides in-home care for seniors, in 2012. Jefcoat built the company to more than 100 employees when he got an offer from a private equity group for more than five times EBITDA. Jefcoat was thrilled. The only problem? His partner wasn’t ready to sell, which kicked off an acrimonious battle ending with Jefcoat selling his shares back to his partner.
Salsa Maker Gets Contract With Whole Foods On Her Way To A Surprising Exit
Despite having distribution at Whole Foods, Kroger, and Safeway, salsa-maker Julie Nirvelli found herself on the brink of bankruptcy. She sent a last-ditch email to four potential acquirers – and you won’t believe what happened next.
Wisdom From The Sale Of Six Businesses
Laura Gisborne has sold six companies, including The Art of Wine, a tasting room with a subscription-based wine club division. With $1MM in annual revenue, it was still a small business, when Gisborne reasoned it was the perfect time to sell.
From Paper Sketches To $441M Sale
Oribe sold in early 2018 for $441M, but in 2008 they were just a few sketches of shampoo bottles on a piece of paper. Tev Finger shares the surprising tactics they used to drive revenue.
Why A NYSE-listed Giant Bought This $2M Business
Angela Mader started selling her fitbook through retail giants like CVS, Target and Walgreens. Little did she know, Mader was also attracting the attention of one of the world largest acquirers.
David Hauser’s Grasshopper is a masterclass in building a business to sell. With no venture funding and fewer than 40 staff, Grasshopper was acquired 12 years after its founding for $165 million in cash and $8.6 in Citrix stock.
The Backstory Behind E&J Gallo’s Acquisition of Barefoot Cellars
Michael Houlihan and Bonnie Harvey built Barefoot Cellars to sales of more than 600,000 cases of wine per year when they got the attention of E&J Gallo, America’s largest winemaker.
3 x EBITDA To 13 x EBITDA In Just 2.5 Years
Embanet broke just about every rule there is for running a company and still sold for $200M.
How to Handle an Acquisition Offer from a Customer
In 2015, Nathan Hirsch and his partner started FreeUp.com, an online marketplace of virtual assistants. Four years later, Hirsch and his partner were billing more than $12 million when they received an acquisition offer from a customer they couldn’t refuse.