About this episode
Chad Maghielse treats his two French bulldogs like family. When their breath turned foul, he invented a dog breath spray. Within three years, he was making over $2 million in online pet product sales at a 35% profit margin. Then he sold his business. In this episode, you’ll discover how to:
- Use negative reviews to spot new business ideas.
- Get your product to rank on Amazon search.
- Establish an audience on Facebook.
- Build trust with your audience using the “traffic triangle.”
- Get more 5-star reviews.
- Create a powerful negotiation BATNA.
Show Notes & Links
BATNA: Imagine two companies, Company A and Company B. Company A wants to buy Company B. They sit down to negotiate a deal. Company A offers $5 million for Company B. But Company B knows that Company C has also shown interest and might be willing to buy them for $4.5 million.
Now, even though the offer from Company C is less than Company A’s offer, it’s still a viable option. If the negotiations with Company A become too demanding or seem to be falling apart, Company B can consider selling to Company C instead.
This backup option with Company C is Company B’s BATNA – the Best Alternative To a Negotiated Agreement. It’s the best route they can take if the current negotiations fail. Knowing their BATNA gives Company B some leverage and confidence in their negotiations with Company A, because they aren’t desperate; they have another viable option waiting in the wings.
Check out the written by John Warrillow on how to elevate your BATNA.
Curious about what your company might be worth? Start with a Built to Sell Valuation.
Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted to reflect the profitability of your business in a buyer’s hands. Typical adjustments that may drive up reported EBITDA would be things like executive compensation (assuming you’re paying yourself more than it would cost to replace you with a general manager), personal travel, automobile expenses, one-time extraordinary expenses (such as a lawsuit), etc.
Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.
Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and attempts to align the interests of both parties post-acquisition.
About Our Guest
Chad Maghielse is an entrepreneur known for founding “Pets Are Kids Too,” a dedicated brand that offers premium pet products for discerning pet owners. Recognizing the special bond between pets and their owners, Chad established the company to cater to the unique needs of pets, ensuring they receive the same quality care as human family members. Under his leadership, “Pets Are Kids Too” garnered significant attention and grew in popularity among pet enthusiasts. Demonstrating a keen business acumen, Chad successfully sold the company, leaving a lasting legacy in the pet product industry.