Exit Story: Selling iLab for 6× ARR, Choosing Strategic Over PE, and Life After an Eight-Figure Exit

In 2006, Tad Fallows and two friends spotted a problem inside Harvard’s cancer labs: researchers were spending more time managing freezers, fruit flies, and mice than actually doing research. They built iLab, a SaaS tool for universities and hospitals, bootstrapped it to high–7-figure ARR, and eventually sold to Agilent Technologies for roughly six times revenue. 

But the journey wasn’t smooth. Cash was often razor-thin with 75 employees on payroll, and an early inbound offer at 3× ARR forced Tad and his partners to decide: take the deal, or gamble on building more value. 

You’ll learn how to: 

• Turn customer funding into product development—while keeping the IP. 

• Use add-on modules and international logos to triple your total addressable market. 

• Push valuation from a “meh” multiple to a life-changing one. 

• Spot the hidden risks of earn-outs—and why some founders never see the payout. 

• Protect employees and culture when choosing between PE rollover equity and a strategic all-cash deal. 

• Face the emotional whiplash of suddenly having “enough” money, yet struggling to stay motivated. 

• Avoid spoiling your kids after a big liquidity event. 

• See how thousands of post-exit founders actually invest their wealth—and why most ditch the traditional 60/40 portfolio. 

Show Notes & Links

Learn about Long Angle

Connect with Tad on LinkedIn

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.

Errors and Omissions Insurance (E&O): This is a form of liability insurance that protects companies and their employees against claims of inadequate or negligent actions, particularly in professional advice and services.

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

Tad Fallows

Tad Fallows is Managing Director at Long Angle, Inc., a global peer-led community built for high-net-worth and ultra-high-net-worth individuals seeking a confidential, solicitation-free space to address personal finance, investing, and life transition challenges.

Prior to his work at Long Angle, Tad co-founded iLab Solutions, a software-as-a-service (SaaS) company serving universities and research hospitals, where he led business operations through founding, scaling, and eventual exit.

Tad holds a Bachelor of Arts in American History from Harvard University, graduating Magna Cum Laude.