Conventional wisdom says leverage comes from having multiple bidders at the table. Janessa White had one, and she told him so.
In 2016, White and her business partner started Simply Eloped, a marketplace that planned elopements and small weddings for couples in 35 cities across the United States. Before they had a single customer, they decided who they wanted to sell it to. The Knot Worldwide, the largest wedding platform in the world. Over the next seven years, White met with The Knot’s corporate development team every quarter, opened her books to them, and told them plainly that they were the company she hoped would buy her.
She broke just about every rule in the negotiation playbook. And still won. The letter of intent landed within a week of her saying she was ready. On this week’s episode, you’ll learn how to:
- Pick your acquirer years before you are ready to sell, then build the business backwards from there
- Open your books to a potential buyer without handing them a reason to compete with you
- Set a revenue target based on what gets a strategic buyer’s attention rather than your own ambition
- Tell your employees you intend to sell, and get more from them because of it
- Build a data story that survives an interrogation by every specialist in the acquiring company
- Justify the unglamorous cleanup work most owners defer
- Negotiate the one term White says she would change if she could do it again
Watch the full episode below.
Quote of the Week
A north star that everyone can sign on to is so paramount for any business.
Janessa White
Curious what an acquirer might think of your business? Let’s take a look.
Deals
Captivate, a company that runs digital video screens in elevator lobbies and common areas of office buildings and residential properties across North America, was acquired by National CineMedia (NASDAQ: NCMI), the largest cinema advertising network in the U.S., for $275M. Captivate generated approximately $27.5M in EBITDA, implying a valuation of 10x EBITDA.
