The Molzi Journey from Startup to Brainlabs Acquisition | Built to Sell Radio
July 14, 2023 |
About this episode
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In 2017, Chris Mole, based in the UK, founded Molzi, a full-service digital marketing agency catering to Amazon sellers. As pioneers in the field, the company witnessed significant growth. By 2020, amidst the lockdown-fueled e-commerce boom, Molzi doubled its team size to over 70 employees and generated revenues exceeding £4.5 million.
In 2021, their success caught the eye of Brainlabs, who acquired Molzi, paying 75% of the purchase price upfront and committing the remaining 25% to an earn-out agreement. In this episode, you’ll learn how to:
- Leverage ‘hook products’ to reel in new customers.
- Employ top talent affordably using Chris’ innovative hiring approach.
- Build to sell without planning to sell and why it matters.
- Time the sale of your business to maximize its value.
- Forge connections with potential buyers long before you’re ready to sell.
- Shrink your earn-out period and boost your upfront cash.
Show Notes & Links
Chris’s Article on his Earn-Out
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Definitions
Note: A note is a debt security obligating repayment of a loan, at a predetermined interest rate, within a defined time frame. Notes are similar to bonds but typically have an earlier maturity date than other debt securities, such as bonds.
Source: https://bit.ly/3Ziaiyy
Convertible Note: A convertible note is a way for seed investors to invest in a startup that isn’t ready for valuation. They start as short-term debt and are converted into equity in the issuing company. Investors loan money to the startup and are repaid with equity in the company rather than principal and interest. The convertible note is automatically changed into equity once a specific milestone has been reached, usually when the company is officially valued for later investments.
Source: http://bit.ly/3XZo8EO
Put Option: A put option gives you the right, but not the obligation, to sell a stock at a specific price (known as the strike price) by a specific time – at the option’s expiration. For this right, the put buyer pays the seller a sum of money called a premium. Unlike stocks, which can exist indefinitely, an option ends at expiration and then is settled, with some value remaining or with the option expiring completely worthless.
Source: http://bit.ly/3ItK5Fh
Letter of Intent (LOI): A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.
Source: https://bit.ly/3ppDnr3
Earn-out: Earnout or earn-out refers to a pricing structure in mergers and acquisitions where the sellers must “earn” part of the purchase price based on the performance of the business following the acquisition.
Source: https://en.wikipedia.org/wiki/Earnout
Due-Diligence: Due diligence is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the financial world, due diligence requires an examination of financial records before entering into a proposed transaction with another party.
Source: https://bit.ly/3yYDfo5
About Our Guest
Chris Mole
Chris Mole recently exited the business he had established six years ago. It was a whirlwind journey for him, starting from a humble spare room operation and growing into a global team of 80 within four years. Having successfully sold his business and completed the earn-out, Chris is now dedicated to assisting other entrepreneurs in launching, expanding, and ultimately selling their own ventures.
To stay updated on his journey, you can follow Chris at FounderON.com. He warmly welcomes opportunities and discussions with like-minded individuals, irrespective of their allegiance to the Sunderland football club.
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