$14M Raised, A Car-Changing Exit

There’s an old idea in M&A called the Rembrandt in the attic. A company owns something valuable — a brand, a patent, a customer list, a data set — and nobody inside the business sees it for what it is. The right acquirer walks in, looks at the same asset through a different lens, and recognizes a masterpiece. 

Dori Yona spent six years and raised $14 million building what he thought was a price protection company for consumers. Earny tracked everything its users bought online and automatically clawed back refunds whenever the price dropped within the retailer’s protection window. 

The model never quite worked. After two rounds of layoffs, a shutdown plan presented to the board, and a move out of the Santa Monica office, Dori pivoted to selling the one thing the company had in abundance: SKU-level purchase data on 3.5 million users. 

That pivot found the acquirer. 

To a consumer packaged goods (CPG) giant trying to understand what shoppers were actually putting in their carts during COVID, the data was the prize. The consumer app was almost incidental. 

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

• Look at your company through the eyes of a strategic acquirer instead of a customer 

• Identify the asset inside your business that’s worth more to someone else than it is to you 

• Recognize when a pivot product is actually a signal flare to future buyers 

• Read the pref stack math that determines whether founders see a dollar when notes and safes are in the mix 

• Tell the difference between a car-changing, house-changing, and life-changing exit before you sign 

• Turn two competing offers from your own customers into real negotiating leverage 

Show Notes & Links

Connect with Dori on LinkedIn

Learn more about SimpleClosure

Curious what your business might be worth? Connect with us here. 

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.

Roll Over Investor: A rollover investor, in the context of selling a business, refers to an individual or entity that rolls some of their proceeds from the sale with the buyer. This strategy allows the seller to defer capital gains taxes and potentially leverage their expertise or resources in a new venture.

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.

TAM: “Total Addressable Market.” It’s a business term that represents the overall revenue opportunity available for a product or service in a specific market. To put it simply, TAM is the maximum amount of money a company could potentially make if they captured every single customer in a given market who might be interested in what they’re selling.

About Our Guest

Dori Yona

Dori Yona is the co-founder and CEO of SimpleClosure, a platform helping founders simplify the process of shutting down a business. Prior to SimpleClosure, he founded the consumer fintech company Earny, which grew to millions of users before being acquired.

After experiencing the challenges of winding down a startup firsthand, Dori launched SimpleClosure to help founders navigate the process more efficiently and transparently. He is also known for advocating for more open conversations around startup failure and entrepreneurship.