From “Unsellable” to $112M, a Bootstrapped Sale to Intertek

Clean Energy Associates acted as the eyes and ears on the ground in China for solar and battery storage buyers, inspecting factories to make sure the products they ordered were built correctly before they shipped. 

In 2016, a banker sat down with founder Andy Klump in Shanghai and asked him three questions. How would he triple his business in a short period of time? Who was on his executive team? Did any single customer account for more than 20% of revenue? Andy had no investment plan and no leadership team beyond one salesperson, and one client made up 40 to 50% of his sales. The banker’s verdict was that the company wasn’t sellable and there was nothing he could do to help. 

Six years later, Intertek Group acquired Clean Energy Associates for $112 million, and the banker who had delivered that verdict ran the sale. In between, Andy survived six straight months of losses, heard from an executive coach that his team saw him as a micromanager, and went through five hires to find the right head of sales. By listening to how he rebuilt the business, you discover how to: 

• Answer the questions a banker will ask to decide whether your company is sellable 

• Fire yourself as head of sales without losing the customers who only want to deal with you 

• Hire a temporary sales leader so you stop making desperate permanent hires 

• Use anonymous feedback from your own team to find out what’s holding the business back 

• Cut your dependence on a customer who could walk away tomorrow 

• Productize a service so buyers value it as more than a string of one-off projects 

• Build a leadership team strong enough that you can spend a year selling the company while they run it 

Show Notes & Links

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Definitions

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.

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.

About Our Guest

Andy Klump

Andy Klump is the founder of Clean Energy Associates (CEA), a global solar and energy storage technical advisory firm he launched in 2008. After building his career in China with companies including Intel, Dell and Trina Solar, Andy spotted an opportunity to help companies navigate the rapidly growing renewable energy supply chain. He built CEA from the ground up into a global business with hundreds of professionals working across more than a dozen countries. CEA was ultimately acquired by Intertek. Andy holds a BA in Economics from Northwestern University and an MBA from Harvard Business School.