How Luke Peters Turned a Used Bar Fridge into an $80M Acquisition Target | Built to Sell Radio

Luke Peters started off by reselling everyday appliances like bar fridges online. Eventually he built a brand and shifted to selling his products on big e-commerce retailers. Peters grew NewAir to $80 million in revenue before selling it for a lifechanging windfall in 2022.

In this episode of Built to Sell Radio, you’ll discover how to:

• Think about something Peters calls “The 10% Rule.”

• De-risk your business in the eyes of an acquirer.

• Weed out charlatan acquirers that don’t have the money to buy your business.

• Answer the critical question every buyer asks.

Peters provides a masterclass for turning nothing into something valuable.

Show Notes & Links

Official Press Release

Connect with Luke on LinkedIn

Luke’s YouTube Channel

Definitions

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 aligns the interests of both parties post-acquisition.

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

About Our Guest

Luke Peters

Founder and CEO coach at Apex CEO, where I help founder CEOs build investable businesses, develop strong leadership teams, drive margin growth, and achieve strategic alignment for long-term success. My mission is to guide CEOs through the complexities of scaling their companies and preparing for successful exits.

Prior to Apex CEO, I spent 20 years growing Newair from a garage startup to one of America’s fastest-growing privately-held Internet retailers. I led the business through its transformation, expanded into major retailers like Home Depot and Amazon, and successfully transacted with private equity in 2021.